Dow Jones Industrials:
Easier than Nasdaq to Trade
It looks like a lazy continuation pattern is forming back to 22393 before a good rally sets in again. This pattern will only
change on any successful breach of either of the small parallels - to upside follow on successul break of upper
parallel for another test of the larger parallel above.And if the lower small lower parallel is sucessfully breached
on the downside it will seek support off the blue support line at 22995 - just much quicker than if it tracks within the flag.
The 22995 level is important to the medium term for the Dow. And we can see that the entire rally between the two blue
supports at 22995 and 22393 is, so far, uncontested. It would be easy pickings for bears should 22995 fail at any point.
It would fall quickly 600 points (a fabulous short if we see it at any point, worth setting an alert for) to 22393 at least and
quite likely to test the lower large parallel before the next rally could begin in earnest.
But until we see a break of those small parallels that form the flag top, this space belongs to day-traders. The 'perfect'
pattern will hold the flag fromation, zig-zagging down to 22995 on about 6th December before the great Christmas rally
kicks in. Only in the event that the two parallels that form the flag are broken in the interim will volumes pick up.
The three blue support lines then become the next obvious points to short from once broken.
MEDIUM TERM
The 22995 level is important to the medium term for the Dow.
And we can see that the entire rally between the two blue
supports at 22995 and 22393 is, so far, uncontested. It would
be easy pickings for the bears should 22995 fail at any point.
It would fall quickly 600 points (a fabulous short if we see it
at any point, worth setting an alert for) to 22393 at least and
quite likely to test the lower large parallel before the next
rally could begin in earnest.
But until we see a break of those small parallels that form the
flag top, this space belongs to day-traders.
LONG TERM
Long term, for what it's worth, this index should rally at least 4 X from the February 2106 low and quite easily 6 times. America has never had it so good since Ronald Reagan rode into the sunset. Happy thanksgiving to the USA. Long Term Cycle Analysis:
Dow and S&P 500: DOWI SPX500: Super-long-term Chart and analysis
LONG TERM
Over the longer term the Dow is still expected to rally at least 4 X and quite likely 6 x from the February 20016 low at 15513
over the coming 15 years.
Last Point: One other thing, this market is one of the best to trade, making conventional patterns, especially in continuation mode - making it muuch easier to 'read' than, say Nasdaq. Look atthe patterns - they're friendly, familiar. Are Nasdaq's? Find a friend you can trust. That would be the Dow.
It looks like a lazy continuation pattern is forming back to 22393 before a good rally sets in again. This pattern will only
change on any successful breach of either of the small parallels - to upside follow on successul break of upper
parallel for another test of the larger parallel above.And if the lower small lower parallel is sucessfully breached
on the downside it will seek support off the blue support line at 22995 - just much quicker than if it tracks within the flag.
The 22995 level is important to the medium term for the Dow. And we can see that the entire rally between the two blue
supports at 22995 and 22393 is, so far, uncontested. It would be easy pickings for bears should 22995 fail at any point.
It would fall quickly 600 points (a fabulous short if we see it at any point, worth setting an alert for) to 22393 at least and
quite likely to test the lower large parallel before the next rally could begin in earnest.
But until we see a break of those small parallels that form the flag top, this space belongs to day-traders. The 'perfect'
pattern will hold the flag fromation, zig-zagging down to 22995 on about 6th December before the great Christmas rally
kicks in. Only in the event that the two parallels that form the flag are broken in the interim will volumes pick up.
The three blue support lines then become the next obvious points to short from once broken.
MEDIUM TERM
The 22995 level is important to the medium term for the Dow.
And we can see that the entire rally between the two blue
supports at 22995 and 22393 is, so far, uncontested. It would
be easy pickings for the bears should 22995 fail at any point.
It would fall quickly 600 points (a fabulous short if we see it
at any point, worth setting an alert for) to 22393 at least and
quite likely to test the lower large parallel before the next
rally could begin in earnest.
But until we see a break of those small parallels that form the
flag top, this space belongs to day-traders.
LONG TERM
Long term, for what it's worth, this index should rally at least 4 X from the February 2106 low and quite easily 6 times. America has never had it so good since Ronald Reagan rode into the sunset. Happy thanksgiving to the USA. Long Term Cycle Analysis:
Dow and S&P 500: DOWI SPX500: Super-long-term Chart and analysis
LONG TERM
Over the longer term the Dow is still expected to rally at least 4 X and quite likely 6 x from the February 20016 low at 15513
over the coming 15 years.
Last Point: One other thing, this market is one of the best to trade, making conventional patterns, especially in continuation mode - making it muuch easier to 'read' than, say Nasdaq. Look atthe patterns - they're friendly, familiar. Are Nasdaq's? Find a friend you can trust. That would be the Dow.