After a period of absence, trading signals using the TCI technical analysis system have returned to Trading Center. The current TCI signal focuses on the Dow Jones Industrial and suggests the possible start of a mini bear market.

Here is the signal:

📈 TCI Chart on Dow Industrial since 2002

🔗 More: » The Dow Jones Industrial Average

As we have mentioned in previous signals, one of the greatest advantages of TCI analysis is its ability to visualize results clearly. In the following TCI chart, covering February 1, 2002, to February 13, 2013, the +10% level often signals mini bear market corrections of around 10%. Below the TCI chart, you will find a line chart of the Dow Jones Industrial closing prices for the same period.

Chart: TCI on Dow Chart & Dow Industrial Line Chart

⚙️ The TradingCenter's Indicator in Action

In the following table, we observe the market activity of the Dow Jones Industrial Average during the recent rally that pushed the index to an intraday high of 14,038.97 on February 12, 2013. All TCI data beyond February 13, 2013, are forecasts, as TCI projects forward-looking signals. On February 19 and 20, TCI predicts a bullish correction, followed by a continuation of the bear market after February 20—possibly with increased strength.

Table: TCI on Dow Jones (1/17/13 - 2/13/2013)

🌐 The Global Environment at a Glance

In the early months of 2013, major stock markets around the world have been rising rapidly. The financial crisis in Europe is not yet resolved, with economic growth in the Eurozone expected only in 2014 and beyond. On the other hand, the US economy is in better shape, but growth remains modest despite strong government liquidity measures. China’s economy is improving, though inflationary concerns remain significant. While we are clearly in a better position than two or three years ago, the question remains: is this the right time for new all-time high prices? If not, a bear market correction lasting several weeks would be a normal and healthy development.

□ Giorgos Protonotarios,

for Trading Center (February 14th, 2013)

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