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Weekly Supplement - January 31, 2010

Pressure remains in bullish domains. This will offer resistance to the magnitude of any bearish bias that may unfold. Also, notice the bearish yellow curve. It is starting to rise. That is another potential source for bearish resistance. The value of "yellow" for the DJIA is 9706 as of this date, January 29, 2010. It will be interesting to observe behavior when and if the Dow touches yellow.

 

Comparing the Great Depression follow-on bullishness to the Great Recession's, you will notice pressure as not being as supportive of mitigating bearish ambition. You should notice in the Mid-term Election Year of 1930, Pressure indeed rose briefly into bearish domains and a few months later, succumbed to bearish ambition.

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