RECOVERY EUPHORIA CARRIES DOW TOO HIGH

The Blue trend line shows the Downslope up to 19 Aug 2015. The Purple Box shows an emerging Down-channel. The Yellow Box shows the area of influence of the Great Fall of China. The Orange trend line shows the current upslope. The Green trend line shows the median value of DIA (DOW ETF) over its history. The overall environment suggests an ultimate softening of share prices in anticipation of lower interest rates. In the circumstances, the current rebound seems over-enthusiastic. No doubt the Downtrend that was emerging prior to Chinese Fall will re-assert itself, though at a higher parallel and softer slope.