Analysis - Friday, January 17, 2003 8 p.m.
At the lows today the Dow was down another 138 points, reaching a
print low of 8559.11. The Dow closed down 111.13, with the Nasdaq closing
down 47.55.
Our Gann 3-Day Chart turned down yesterday, and it is still
pointing down as of this update. The 3-Day Chart could not turn back up now
before Thursday of next week at the earliest.
Our Gann Weekly Chart on the Dow turned down today, and it is even
stronger than the Gann 3-Day Chart. At this point only a rise above 8870 on
a print basis and 8897 intraday in the Dow could turn the Gann Weekly Chart
back upward, and signal that even higher prices are coming in this time
frame. The Gann Weekly Chart on the Nasdaq also turned down today. At this
point only a rise above 1468 in the Nasdaq from here could turn the Gann
Weekly Chart back upward, and signal that even higher prices are coming in
this time frame.
If the Dow continues to sell off even more strongly next week,
there should be support near the bottom of the Dow's 21 Day 3 1/2%
Exponential Trading Band. The bottom of that band on Tuesday should be in
the area of 8325 or so, depending on where we close on Tuesday.
The 5-Day RSI on the Dow today closed at 33.98. The 5-Day RSI on
the Dow does not truly reach oversold territory, suggesting you are near at
least a short-term low, until it falls below 30. So there is room for even
lower prices over the next few days.
For now, we see no reason to alter our current positions. Our next
update will be released on Tuesday evening.
AI
