Despite a few hiccups, the market has been going quite steadily upwards. Even news of volcanoes, civil unrest and the Goldman suit could not hold the market down. This is true for both the Dow Jones and the All Ords up until last week.
Looking at the weekly charts below, the Dow is powering on quite strongly. Looking at the Gann chart below, it has clearly moved part the resistant Gann-5 angle and is between two other Gann angles. There is no indication that it will hit a higher resistant angle soon.
The All Ords present a slightly different story. OVer the last week, daily trades showed symptoms of nervousness. The week ended slightly lower. While one down point does not determine a change in trend, the current position of the All Ords looks as if it is forming the third peak of a triple top. To confirm a triple top we need to wait for it to pass the bottom of the triple top formation which is around 4500.
If a triple top does form for the All Ords, it will represent a strong decline. At this moment with the Dow heading up strongly, the notion of the Dow and All Ords going in opposite direction is difficult to imagine. The other likely option is that one of these two will have to change its direction.
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