Wednesday, January 7, 2009

Point & Figure Charts…

Charts courtesy of

Just want to point out that the DOW has broken support on the P&F chart and has produced a target of 8,400. The rest of the indices have NOT broken down yet.

I also note that the dollar index is making an interesting formation on the P&F chart, almost looks like a triangle. Up or down, that is the question… the target is now down, but if equities do what I think they will, the dollar could very well break this to the up side.

Lastly here is a candlestick chart of the VIX that clearly shows a broken trendline after finding support in the mid 30’s like I said it would here VIX Analysis. The P&F, however, does not show this as a breakout, target is still 20, and you can see that when you look at the P&F it looks even less bullish.