Dow, oh man... sieht uebel aus !
Zick-Zock : Dow, oh man... sieht uebel aus !
|Updated 11/18 for Wednesday's market.|
Trend Line Break
Dow forms lower high and trends lower, breaks major lower trend line.
From prior commentary, "...The Dow trended lower the entire session, but held at key lower trend lines, which pushed the index higher to the Close. An upside break through 9,750 will further extend the upmove, while a break of 9,625 will indicate an even greater decline..."
The Dow moved higher at the Open this morning, but turned down precisely off the 9,750 level and trended slowly lower the remainder of the session, as seen in the 15 and 60 Minute Charts. The index actually accelerated to the downside late in the day and broke the major lower trend line at 9,625, best seen in the Daily Chart.
The fact that the Dow has broken the major lower trend line, which has remained in tact for over eight months, implies weakness. A downside break through 9,600 could extend today's downmove and spark and even sharper sell-off in the medium term. The lower high that formed beneath the 9,750, seen in the 60 Minute Chart, adds fuel to this theory.
Further weakness is very likely in the near term, especially if the index holds beneath 9,750 over the next session. Strength will not be seen unless this level can be crossed.
Short Term Dow
Short term, the Dow formed a lower high beneath the 9,660 level, seen in the 5 Minute Chart, which implies further weakness at the Open. Lower highs are continuation patterns, therefore, we should see continued downside movement unless 9,660 is broken to the upside.
Medium Term Dow
In the medium term, we are still out of the market, as the 30 Minute Rule kept us from entering Short late in the session. We will look to enter Short below 9,600, and Long above 9,750, wit 20 point stops.
NASDAQ & S&P
The NASDAQ and S&P 'popped and dropped' today, sparking a day-long downtrend. Clear lower trend lines have been broken, which imply a likely follow-through to the downside in the near term. *
The Dow reversed down off the 9,750 this morning, forming a lower high, which will likely make for further weakness in the medium term. Should the index break and hold below 9,600, look for the index to endure a sharp decline due to break of the major lower trend line.
Thanks for listening, and Good luck in your trading..
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