sreebhashyam

DOW - BEARS GIVING SHOULDER TO BULLS?

Dow had spectacular rally yesterday and today before the bell pulling all the boats in the Global financial markets. Notable absence is yields still higher, dollar still stronger. The graph suggests all the up move have lesser volume and down move have more volume. While below 35800 on close basis the chances are we are chugging along to make and form the right shoulder. Left shoulder took almost 45 days. By this yard stick the completion of right should to take at least a month. Does that mean going into 2022 this is going to play out? That depends whether we are able to hold the above on close basis. First such signs appear if we close below 35300 without attempting towards 35800... That provides an edge to be ahead. A close above 35800 negates all the above assumptions. Consider this as an educative analysis only.

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