We are at predictable resistance in DJIA. Last Thursday saw the break of a rising wedge, but Friday offered little follow-through. We are now falling moderately in early Sunday trading (at the time of writing).
I was aiming for a test of trendline resistance within the purple box. We can still test this area; either way, I'm betting on a wholesale decline in equities.
THIS IS NOT A CRASH! US equities will not crash. We are simply in a consolidation period of multiple months, possibly years, which will eventually lead to an explosive rally.
My targets are the two trendline support lines. Should we break the second, I will be able to better judge where a buyable low will form - and there WILL be a great buying opportunity. This is a multi-month trade, lasting over the Summer, and possibly beyond.
For now, I'm short, and will add on any intraday rally on Monday, and possibly Tuesday.
Only a solid daily close above the previous swing high in the 25300 area would shift me into neutral. The market is would have to rally beyond the 25800 to make me bullish.
I was aiming for a test of trendline resistance within the purple box. We can still test this area; either way, I'm betting on a wholesale decline in equities.
THIS IS NOT A CRASH! US equities will not crash. We are simply in a consolidation period of multiple months, possibly years, which will eventually lead to an explosive rally.
My targets are the two trendline support lines. Should we break the second, I will be able to better judge where a buyable low will form - and there WILL be a great buying opportunity. This is a multi-month trade, lasting over the Summer, and possibly beyond.
For now, I'm short, and will add on any intraday rally on Monday, and possibly Tuesday.
Only a solid daily close above the previous swing high in the 25300 area would shift me into neutral. The market is would have to rally beyond the 25800 to make me bullish.