Bearish Gartley pattern forming on the Dow Jones Industrial
I've been expecting the stock market to take a pretty signficant hit for quite some time. After finding this pattern, it seems like it might have one last bull-trap left to finish off this Gartley pattern and almost definitely making it's way down. A lot of the smart money that hasn't already moved into cryptocurrency should start doing so at this point, after seeing Bitcoin's impressive impending rise, this pattern playing out, and the short-term results after it completes causing panic selling.
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Broke down from a rising wedge, bearish divergences...
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Even though this pattern is now invalidated due to making a higher high at the peak, I remain quite bearish for now and I expect the lines to still have significance on the way down because of they way harmonic ratios and fibonacci are by nature and the fact that I think all that price action above the short-term harmonic pattern that I pointed out in my "short-term analysis" related idea was simply not meant to be. Trump was bragging about the stock market every day in his ridiculous rallies, people bought into the hype. That's what I attribute most of that price action to.Note
This is where I would take my hypothetical short position, based on the bear flag with a target much lower than the yellow line it's currently above. The orange arrow is just the target of an insignificant potential H&S on the 1 min chartNote
Still bearish on all American indices, extra bearish here. One reason pictured below. Just very obvious horizontal resistance on the sum of the indices. Then of course there's Trumps incompetence, the shutdown, etc.Note
Correction... That chart was the sum of the indices minus the price of bitcoin(which leaves a lot of room for bitcoin to rise before that chart hits the horizontal support). The chart for the sum of the indices, disregarding bitcoin, is in a quite similar position resistance-wise though.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.