It is a bit premature to analyze at the moment. But, as the chart shows now, it is unlikely to do so.
The reasons:
1. Even after the Inverted Head and Shoulders breakout, it could not breach the 20 May high. See points A and B.
2. Euro, is dropping from the top trend line shown. This Euro movement have the potential to clear the recent lowest low.
So, the inability of DOW for a powerful breakout ( Compared to what normally happens with such patterns) and the drop of Euro combined gives the indication that, even if Asian Markets open in a positive mood, it may not sustain.
We will reanalyze the action after some more confirmation signals.
5/28/2010 6:31 AM
