Looking at this...DOW and IBM

BIG rally off the lows.. 22%

NOW what...??

Still in down trend channel despite rally...

Overbought so some pullback ....or will it be resumption of down trend.??

Watch KEY levels...

Q1 END tomorrow...!!....

IBM.... tried to rally back into channel, broke down Friday..maybe a rest before further strength, watch 92 again...

FTSE CHART

Looks like critical junction ...

Red descending trendline should give some resistance..BUT a break through here gets us back into that congestion zone.. upper boundary 4330

then strong resistance at 4685..

A break below the current up trend we may see test of lows..higher low?

Note stochs are overbought....but can remain so if we get more up trend..wait for break either way...

EUR GBP..not yet parity?

With the £ strengthening against the dollar and Euro, MAYBE looking at the monthly chart of Euro pound..we may still see a move back to 1.18/1.20, also £ looks like it has broken out of downtrend against dollar...


Monthly charts still show pound oversold..against both..

good summary of last weeks news!

http://thehousingtimebomb.blogspot.com/

More charts...DOW and DAX

Dow ..after yesterdays moves at crucial point...DOW closer to break out, though yesterdays rally smacked of large short covering. today may see more of the same..but a pull back is imminent...so no chasing it...HOWEVER if we get a pullback and a rally through that trendline 8350 to 8500 looks likely..

At the moment looks like a pull back should be bought...1000 points straight up... 1/3 back down?


DAX

Not so strong...needs to clear 4300 for a chance at4700-4800. Entering resistance zone now and trendline resistance at 4250 ish..

Gold...

Gold taking a tumble so the scenario in the above chart may be about to play out...short term target 846 or thereabouts mid term target if we break 886 ...774

things

everything interlinked...

Crude rallied with equity markets ---or EVEN ahead of them...a leading indicator?? Now at resistance 50 bucks...psychological level?


Euro ..key level on downside still 1.24...recent rally head butting resistance at 1.3070.. if we start down from here may be the right shoulder of LARGE H&S..

Dollar ...due a bounce?

Equities

Finally maybe too may people looking for the pull-back/resumption down trend...so the rally may go further than most predictions...BUT it will come..just at what level!!

IBM again...

Another look at IBM..should be key for the general market as it has huge weighting in DOW (banks are now mostly INSIGNIFICANT).

We had a break below the trend channel (looks more like a BEAR flag) which if it is the case does not bode well for overall market. Flags fly at half mast..so a crude price projection would be 37!!! Watch 82 level if it breaks we should get a quick move to 70's


Obviously if we hold at 82 and rally then look for resistance at trend channel...

DOW

Looks like we are in the final move down..clear 5 waves (major)...wave 5 looks like we need a wave up and one more down to finish...

When this snaps back will be like a rubber band..imagine ALL those shorts laid out in the last 1000 points all trying to cover...!

Remember JP always gets in last on the move....