Technical Analysis of Financial Markets

Tuesday, August 08, 2006

Dow Jones - Day before the Fed

Today penetrated a 13-day uptrend but managed to close the session resting on the trendline. OBV has been declining since the uptrend began implying a divergence. Stochastics are signalling overbought conditions and have crossed looking to turn lower. Technically, the Dow seems to be weakening and ready to end the current uptrend. However, the Fed’s decision on interest rates tomorrow will of course steer the market.

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