Dow Bounces Like a Brick While Making Big Breakout
What a difference a week makes.
Through the week we've seen indices lose the gains of the year (most of them dropping to October sort of levels) in the US. Some markets have even worse performance, with the FTSE100 now under the lows of 2019.
Through the fall the Dow bounces were astonishingly small. Even as someone who is highly bearish and expected to see big moves (as I posted at the weekend before it all started), I was surprised by how strong the selling was.
This looks like it has been a breakout leg, and this would mean there is a much more jaw dropping fall to follow. I think now the bears will rest for a while. There may be some positive news or the negative news may let up a bit. Buying Dow now is becoming lower risk and selling this low is becoming very risky.
I do not expect to see new highs. I think we're going to trade 17,000 and lower before we trade 30,000 on the Dow. I'll be looking for big sells if we form an obvious bull trap sort of move.
Through the week we've seen indices lose the gains of the year (most of them dropping to October sort of levels) in the US. Some markets have even worse performance, with the FTSE100 now under the lows of 2019.
Through the fall the Dow bounces were astonishingly small. Even as someone who is highly bearish and expected to see big moves (as I posted at the weekend before it all started), I was surprised by how strong the selling was.
This looks like it has been a breakout leg, and this would mean there is a much more jaw dropping fall to follow. I think now the bears will rest for a while. There may be some positive news or the negative news may let up a bit. Buying Dow now is becoming lower risk and selling this low is becoming very risky.
I do not expect to see new highs. I think we're going to trade 17,000 and lower before we trade 30,000 on the Dow. I'll be looking for big sells if we form an obvious bull trap sort of move.
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