DJIA daily chart 09-Nov-2004

The topping pattern continues today. Consolidations like this, short bars, either show the halfway point of a swing move or a top. This still looks like a top to me. The stochastics are almost crossing today and should cross tomorrow. We may have more sideways bars, but then the likelyhood is for a down move. How far down? Will it just be a correction in a bigger up move? We'll wait to see what the market tells us by the levels people are willing to buy or sell the market. I don't know of a system which will want you to trade a market like this other than an option straddle, waiting for a breakout one way or the other.