DOW

NASDAQ COMPOSITE SO MUCH WEAKER THAN THE DOW

The Nasdaq composite index is behaving so much weaker than the Dow...right now the Nasdaq is down just over 7% from its peak whereas the Dow is just 1/2% lower...look at the weekly chart below which highlights Nasdaq's weakness. You will notice that the decline in recent weeks in the Nasdaq has dropped it to the parallel lower channel line where it has found support...in the process you will notice that the lower part of the chart shows the Nasdaq relative to the Dow...see how it violated its uptrend week of April 4th and has dropped sharply highlighting the relative weakness.

DJIA PRICED IN EURUSD UPTREND INTACT

DOW HAS VIOLATED ITS MEDIUM TERM UPTREND

The Dow has violated its medium term uptrend and the next significant support is at +-12035 at the long term uptrend. The Global Seven short term model shows that DJIA is in a declining trend at +2 meaning that only crude oil and CRB index are weaker www.investrac.com/global-seven .

DJIA/TBOND RATIO HAS REVERSED DOWN

TBONDS are going to be stronger than the DJIA in the short term...that is the signal we have from the DJIA/TBOND ratio where the short term indicator has dropped from 100 to 98.2 and the Forecast shows a low October 26th.

EQUITIES TO UNDER PERFORM COMMODITIES

IS THE DOW'S DOWNSIDE POTENTIAL LIMITED?

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DJIA TO WEAKEN AGAINST CRUDE OIL

DOW RELATIVE TO EURO IS AN INTERESTING SITUATION