Friday’s Market Trend

The Dow Jones closed up 102.43 points or 1.17% to 8829.04

The Dow is in a Bearish rally and this rally has lasted 5 days so far.

I have adjusted the top trend line very slightly from wednesdays chart. I want to be sure in my analysis of the market bottom and in the  bullish breakout from bearish trend.

For the bearish trend to be over, the market will have to open and close above the upper trend line, creating the “bullish breakout from bearish trend” and the signal that the market has been oversold.

If the market opens and closes below the upper trend line and out from the bearish rally lines this will indicate a “bearish rally breakout”, which is a bear signal.

Thursday’s Market Trend

The markets are closed today because of the holiday, so here are the Australian and UK markets

FTSE closed up 73.41 points or 1.77% to 4152.69

The FTSE is in a bearish trend and close to the upper trend line.

If this market opens and closes above 4400 it will create a “Breakout from Bearish Trend” and that could signify the end of the downtrend.

If it fails in the “Breakout from Bearish Trend” it will become a “Breakout from Bearish Rally” which is my classic bear signal.

AORD closed up 48.60 points or 1.40% to 3528.20

The market is having a rally which is 4 days old. This rally is within a bearish trend and is close to the bottom trend line.

The market will have to open and close above 4200 to break its downward trend.

If the rally fails, expect this market to fall around to the 3000 point mark.