DJI

The DJI has had the bulk of trading action around the area between 13600 and 13200 since the beginning of May. There have been 20 closes above 13600 and one close under 13200 made on August 3rd. In perspective, while retracement to 13200 represents half the gains of 2007, it is a mere 5.7% correction from the high. Closes over 13600 leaves the highs wide open. But while we have been volatile, it is not much of a correction. Typical corrections in any market are between 10 and 20 percent. Commodity traders of any experience have sat through many a 50% correction. Regardless of valuations and the other rationalizations, this market is fat in technical terms. It may continue to go up, but it is fat.