Seven or Nine

 
Trends or countertrends have seven or nine legs. Currently both seven or nine legs are incomplete for the DOW Industrials. Above this prices have broken above channel highs suggesting continued positivity. We continue to look higher to 15,000 for DOW. While DOW is in a continued positive trend, locally  Indian Sensex and sector indices are hitting bottoms. Now either the DOW has to reverse along with continued negativity on India or India has to hit a low and turn positive along with DOW.  NSE BANK is at key intermediate supports near 11,000 and prices have made a key reversal bar.  Sensex also is at key support levels at 18,000. If the prices should reverse they should now. Even INR confirms a strengthening view. Till 54 levels stand firm, INR should push lower down back to 50. As anticipated Gold has fallen to 1,500 levels and Crude oil continues to move in a sideways consolidation.
This is what we said on  29 Feb 2012 and 4 Dec 2011.
“The current 12,000 resistance high offers a true trend line resistance. A break here would leave DOW in a free rise to historical highs. Above this the monthly and weekly oversold momentums are also testing key trendlines. A break there too will confirm that the cycle lows are already in place and the BULL SURPRISE might happen.“
 “Markets are celebrating DOW 13,000 and even if this seems insignificant to the bears they should understand that the decade long supply point is now 8% away. Whenever that level breaks, all bullishness is going to break loose. Dow is headed higher and don’t let the dips trip you.”