DOW closed 7776 up 500 points :eek:
It seems your cat is made of flubber DrW and it has been dropped from a great height.
Your cat has super- bounced up through a major resistance point (old bottom) and is closing in on this huge band of resistances between 7900-8500. Remember the period between Jan - Feb 2009 when the DOW's huge selling pressure had trouble breaking downwards through this wide band.....
The Million Dollar question is... has the DOW got enough momentum and buying pressure this time around to push upwards through that band past 8500?.
From the Jan - Feb 2009 experience this wide band is a difficult zone requiring much energy to push through it.
If it manages to break through that band to the 8600 mark this must be seen as extremely bullish as that band becomes then becomes a huge massive support again.
Can the DOW get to 8600? I think
Ichimoku charts may help to analyse how strong the DOW is, in relation to the strength of that 7900-8500 resistance band, by seeing where the Kumo is and whether the DOW has passed above it or not. I suspect the Kumo maybe situated around the 7900 -8500 ...are my suspicions correct?
Can any Ichimoku followers help with this?
I will post part of this post on the
Forex/DOW thread