Purple line - All time high
Yellow line - Bear channel
Green line - Trend line/Support
Purple wave 50ma
blue wave 100ma
Last week The dow was rejected from all time high twice. If this were truly a bullflag the momentum would have carried it easily into new highs.
Now the banks, energy, and materials did have a rough week. And if you analyze each sector XLF,XLB, i dont see any let up in that bleeding.
What really kept the dow Afloat was gains in tech like Cisco, Apple, and Msft;That support will vanish this week . So where does that leave the Dow? Unless the banks and materials make a complete 360 this index will be headed back to 33k courtesy of the double top that will form if green trendline support gives way. DJI hasnt closed below the 50ma since june 16th. Currently that 50ma intersects at the top of that bear channel; A close below that area will be conformation to short. Until the dow closes back inside that channel and under the 50ma all short entries are premature.. Good luck
Yellow line - Bear channel
Green line - Trend line/Support
Purple wave 50ma
blue wave 100ma
Last week The dow was rejected from all time high twice. If this were truly a bullflag the momentum would have carried it easily into new highs.
Now the banks, energy, and materials did have a rough week. And if you analyze each sector XLF,XLB, i dont see any let up in that bleeding.
What really kept the dow Afloat was gains in tech like Cisco, Apple, and Msft;That support will vanish this week . So where does that leave the Dow? Unless the banks and materials make a complete 360 this index will be headed back to 33k courtesy of the double top that will form if green trendline support gives way. DJI hasnt closed below the 50ma since june 16th. Currently that 50ma intersects at the top of that bear channel; A close below that area will be conformation to short. Until the dow closes back inside that channel and under the 50ma all short entries are premature.. Good luck
