Namiar: OB/OS is the corner stone of my Multiple Time Frame Analysis Models coupled with Price/Volume Patterns, Trend lines, Horizontal support/resistance areas, Fib retrace and projection points, etc.
OB/OS takes place in various time frames each effecting and acting on the others. If you are interested I shared quiet a bit on the IHUb MDA Thread.
I would not hold my analysis strictly to the Dow. I prefer to use the NYA and COMPS the broader exchange composites. However, with the changes in the NYA a few months back, frankly it screwed my longer-term models up. That change has been one big pain in the ass.
So, working with a handicap, the NYA is closer than the INDU to making a higher high...moving above its June high.
Correct, over bought pullback (or retrace) does mean I ultimately expect the rally to have legs using your terminology. I often say extend to mean a higher high and if talking about a decline a lower low.
One thing any good trader/investors should learn early on, is he or she will be wrong at times. So those other roadmaps could be right. The market will get around to providing the answer. Since the SI MDA Thread days, I've always preferred to posts my analysis once, let others posts what they think and then let the market get around to letting us know who was more correct. I don't try to change peoples minds. Everyone should make up his or her own mind.
LG
PS: By the way, if the INDU moves above its Feb 2004 Falling Resistance Line (semi-log scale) with my MTF Models cycled correctly, I think the bet will be pretty good it will take out its June high. If that high is taken out the bet increases that the August low was a low that will provide a test of the Feb 2004 high.
So while I have my expectation, I expect the Market as measured by the major Indexes to provide proof along the way I am on the right track.
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