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March 10, 2006

Dow Forms Falling Flag

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The Dow has a falling flag working over the last three weeks (magenta trendlines). This is a corrective pattern that requires confirmation with a breakout at 11100. Such a move would signal a continuation of the February advance. As long as the flag falls, we must entertain the broadening formation, which is a big bad bearish reversal pattern.

Posted by Arthur B. Hill at March 10, 2006 01:49 AM

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