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Dow Jones Industrial Average and Natural Gas

  • DJIA 
  • The Dow Jones Industrial Average is forming an impulse wave. Currently it is in the third wave of a five wave pattern. 
  • I expect a retest of 11,200 resistance level. Support is down at 10,700. 11,700 was retested over the last two weeks.
  • The equity markets remain in a primary down trend.  
  • Valuations in Europe on bank stocks are showing signs of distress and may be near a bottom. 
  • Uncertainty still remains over the sovereign debt crisis in Europe and Greece will default on its debt.
  • The euro stability fund should be used to recapitalize banks and Greece should default on its obligations.
  • Natural Gas 
  • Natural Gas is in a down trend on the one hour chart and has been bouncing between 4100 and 3800.
  • Winter in the northeast approaching which is fundamentally bullish for natural gas, although supply remain abundant.