DJIA has completed it's Sell- Setup and broken it's 1-3 Trendline on 9th March 2017.
The 2-4 Wave forms a narrow pattern meets the 1-3 wave, further strengthening the sell structure.
According to the Sell-Setup, market can come down to 20200 levels in coming weeks. Traders can put a protective stoploss at 21200.
the DOW is heavily overbought and it doesnt havw volitilty , when volitility is not there then people start selling which create a selloff, the advantage of this trade since the dow doesnt move much you wont get short sqeezed , trump will somehow scare the markets.
Dow is in distribution phase. Upward trend line has been broken. RSI shows negative divergence.
As per Dow's theory, line indicates movement. Dow forming a line indicates a big movement is coming soon. Longer the line formation faster the movement. in.tradingview.com
Barron magazine recently published an article stating Dow @20000 & beyond, that is first warning sign that Top is near. Also notice momentum is fading (ROC) did not respond by making new high while Dow made new high.
So going short looks very attractive here.
We have bearish Butterfly on DJIA weekly chart. Currently we are in D leg. We need to confirm reversal as Bearish Butterfly D leg can get extended too long.
If the pattern is correct big volatility in global market is coming. It's just the matter of few week(s) !
Bears - 1
Bulls - 0
Bears leading the game with 1-0 breaking below the range. Can bulls draw the game bouncing from support of rising trendline or Bears win with 2-0?
