Wednesday 30Jan2013 - Charts of the Day!

There is a good possibility that equity markets have or are very near completing their big secular bear market rally from spring 2009. Technically the long term DJI channel line dating from 1937 is expected to provide formidable resistance to higher stock market index levels. It has been tough for the past year for those sitting with cash on the sidelines waiting for a buying opportunity; but it looks like wave 1-2-3-4-5 of 2(circle)(C) is now complete.

The following Dow Jones weekly chart is from todays EWI Short Term Financial Forecast update.

As well the NYSE Bullish Percent Index Chart is up at levels that also signal an overbought market that is due for a reversal to the downside. A reversal will be signalled when the NYSE BPI falls below 70% on the chart.