Technical Analysis - Gann weekly 12Jan09 on Dow Jones and All Ords

Following from my post in early January in which both the Dow Jones (DJIA) and Australian All Ordinaries (XAO) were sitting on turning points, recent movement may confirm a break in the trend.

The Dow seemed to have broken the support angle Gann20 coming from the bottom. If so it may be heading down to another support line, perhaps Gann10 from the bottom (which is not plotted yet). It may also find support at the downward angle Gann10 (yellow line). Both of these support are a long way off, suggesting we may have a large drop to go.



The All Ords, since late November, has actually went down, touched the Gann2.3 (pink) support but has bounced up since Christmas. Although it does not seem to have broken the support at this point, rather it is still close to the support angle and thus waiting for the next break-out, we should consider what's happening in the US. If so, the recent break downwards in the Dow, would suggest the All Ords is most likely to break the Gann support and head further downwards.