Weekly Report 6th January 2015:
On the Monday webinar there was discussion about the divergence of the RSI and price trend in the Dow Industrials.
Following last night 330 point move down the first support level at 17500 has been reached.
Primary trend remains UP.
Any further breakdown from this level would see 17280 as the next level of support on a Weekly basis.
The XJO is also displaying considerable weakness.
This Weekly chart of the XJO with the Ichimoku cloud shows the future cloud very thin and the current
Index value siting on this Kumo support level of 5380.
This setup can be very bearish going forward if the price breaks below this level.
With the Kijunsen and Tenkansen making a bearish cross, lower price can be expected.