Dow Jones Next Possible MovePair : Dow Jones ( DJI - US30 )
Description :
Bullish Channel as an Corrective Pattern in Long Time Frame
Impulse Correction
Completed " abc " Corrective Wave
Resistance Level
Divergence - RSI
DJI
Update on #SP500 The market violated the channel, which means the count is getting more nuanced in the near term, and I suspect that the advance can continue for longer. It is definitely not something I am going to engage in.
Dow Jones Industrial Average: To 36000 Epic Milestone and BeyondDow 36,000: A New Strategy to Profit from Coming Stock Market Growth is a book published on October 1, 1999 by columnist James C. Glassman and economist Kevin A. Hassett in which they argued that stocks were significantly undervalued in 1999 and came to the conclusion that the market will grow 4 times, and the Dow Jones Industrial Average TVC:DJI will rise to 36,000 by 2002 or 2004.
The most important fact about stocks at the dawn of the twenty-first century: they are cheap...
- Glassman and Hasset. 1999. "Introduction". Dow 36000
However, life has made its own adjustments, and the era of "irrational optimism" (as it always happens) - came to its inevitable end.
In January 2000, just about three months later the publication of the book, the Dow Jones Index reached a record high of 11,750.28 points, which subsequently remained unbeaten for the next 6 plus years.
In the early 2000s, the Index fell steadily after the dot-com technology bubble burst.
And after the well-known bang on the American Twin Towers happened on September 11, 2001, the Dow Jones index fell even more, reaching a minimum of 7286.27 points by October 2002.
Financial crisis of 2007-09 sent the Dow Jones to even lower levels, which ultimately freed the hands of Congress and the US Treasury to uncover the money bazooka through raising national debt limits.
In general, only after the second attempt to fix above DJIA 10-year moving average in the third quarter of 2011, the Dow was able to rise in a half of the predicted path (from about 10,000 to 36,000 points).
Just 18 years later to the publication, in October 2017, - Dow reached milestone of 23,000 points, and the final achievement of the desired mark of 36,000 points took place only in December 2021.
However, by that time just few people remembered this book and its authors, who were later called "charlatans". Given that over the 22-year period since the publication of the book, consumer spending in the US ( FRED:PCE ) has increased by more than 2.5 times overall; the prices of gasoline, oil, wheat, corn, and sugar have more than tripled, and the prices of metals such as copper and gold have risen 5 to 7 times.
Closer to today's reality, the Dow Jones Industrial Average continues to follow the main uptrend trajectory formed by the US recovery from the 2007-09 Housing crisis. Dow stays for nowadays above its 10-year simple moving average that supported the index both in the third quarter of 2011 and at the time of Covid- 19 market collapse in the first quarter of 2020. At the moment Dow is being above the marked moving average by about 36.45%.
Technical resistance is considered as a range of 34,000 - 34,500 points, that lost in the first quarter of 2022. Attempts to return above this strong level have been overshadowed for several months - either by a banking collapse, and later by aggravated talk about the crisis of the US national debt ceiling.
In such scenarios, coupled with inflation, which remains significantly above the target level of 2 percent, despite repeated attempts to curb it by the Federal Reserve , the 36,000th milestone can for quite a long time, for a decade or even a year and a half, become a growth constraint of the world economy for quite a long time - for a decade or even fifteen years.
Key facts about the Dow Jones Industrial Average:
👉 Technical chart provided by ETF AMEX:DIA - SPDR Dow Jones Industrial Average ETF, generally in line with the price and yield of the Dow Jones Industrial Average (100:1 ratio).
👉 Dow Jones Industrial Average ( DJ:DJI ) is made up of 30 price-weighted blue-chip components of US stocks.
👉 DJIA is the oldest barometer of the US stock market, the flag and the logo of capitalism, and the most widely quoted indicator of the activity of the US stock market and world economy.
Unraveling Efficient Market HypothesisMany believe that a well-defined, simple, and robust trading strategy can help a trader acquire gains that outperform the market or purchase undervalued stocks in hopes of outsized returns upon rebound, but is this the case? Students of the Efficient Market Hypothesis (EMH) would argue that fundamental and technical analysis are pointless approaches to the market that are merely a mirage of a self-fulfilling prophecy.
EMH is a cornerstone of modern financial theory, which posits that markets are perfectly efficient and always reflect all available information. The influence of EMH is pervasive, guiding investment strategy and shaping financial regulation. There is growing skepticism among academics and traders about the accuracy and efficacy of EMH in modern markets. EMH is a dense topic, but we will do our best to dive into what EMH is, its strengths, and its limitations in modern times.
Understanding EMH
To understand what EMH is, we need to understand the forms of EMH, of which there are three levels of efficiency: weak, semi-strong, and strong. The weak form of EMH suggests that current prices reflect all past trading information, including past prices. Thus rendering fundamental analysis and technical analysis moot and impossible to beat the market. Semi-strong EMH argues that the current price accounts for all public data and does not include private data. Again, fundamental and technical analysis will not be fruitful in helping traders outpace market returns. The strong form of EMH posits that prices reflect all available information, including insider information.
In Support Of and Against EMH
Supporters of EMH argue that markets are efficient because of the excess number of rational investors, and the competition among them (bulls vs. bears) ensures that prices are always accurate. The more market participants there are, the more efficient a market becomes as it becomes increasingly competitive and more price information becomes available. The competitive nature and increased liquidity of the market shows that it is difficult, at best, to consistently outperform the markets.
Opponents of EMH argue that human biases and irrational behavior can lead to market inefficiencies. Investors often make irrational decisions based on emotions and cognitive biases. This is tough to argue, given the countless articles and books on market psychology. Market anomalies, such as the value and momentum effects, also suggest that markets are not perfectly efficient. Historical market events, such as the 2008 financial crisis or other perceived “bubbles,” further question the assumptions of EMH.
Practical Implications and Real-World Observations
Despite EMH, some investors have consistently outperformed the market; famously among them is Warren Buffet. Some hedge funds have also been successful in beating market benchmarks. One could argue that though a market is efficient, there are individuals who are statistical anomalies that have outperformed the market under EMH theory.
Market inefficiencies and opportunities exist in specific asset classes or regions, such as emerging markets or distressed debt-stricken economies, but an easily observable form of market inefficiency is arbitrage trading. Wherein traders buy and sell to exploit minute price discrepancies of assets between exchanges.
Alternative Approaches
It is hard to objectively believe that one can not formulate a system that helps a trader make returns that outpace the market. Fundamental analysis and technical analysis are two approaches to investing that challenge the assumptions of EMH. Fundamental analysis involves examining company-specific information and valuations to find undervalued stocks which is entirely conflicting with EMH theory. While technical analysis involves using price patterns and indicators for market timing in hopes of profits in your chosen trade direction.
The Future of Market Efficiency
The rise of technology, such as high-frequency trading, trading algorithms, and artificial intelligence, is changing the landscape of financial markets. Some argue that technology is making markets more efficient; others would suggest that it is introducing new sources of market inefficiencies. Will the definitive parameters of what EMH need to be adjusted as the markets evolve? Only time and people with significantly larger brains than I will tell.
Conclusion
EMH remains a principal concept in modern finance, but not without limitations and challenges. It is paramount for traders to understand what EMH is, even if they rely on different analysis theories to make their own trading decisions. Investors should adopt a flexible and adaptive approach to investing, recognizing that markets are not always perfectly efficient and that opportunities for outperformance exist. Ultimately, we believe the key to successful investing is a combination of sound strategy, disciplined execution, and a willingness to learn and adapt.
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#SP500 UpdateThis time I will not suggest much optionality. I see the price rallying almost immediately to form a new local high before the trend changes. I take my comfort in that I did expect a local bottom to happen and the price shaped (A)(B)(C) flat. The scenario gets invalidated if the price pierces the bottom of the channel.
DJI - Horizontal Trend Channel🔹Break upwards through 34200 points will be a POSITIVE signal.
🔹RSI curve indicates a rising trend, indicating potential upward trend reversal for the price.
🔹Technically slightly negative for medium long term.
Chart Pattern;
🔹DT - Double Top | BEARISH | 🔴
🔹DB - Double Bottom | BULLISH | 🟢
🔹HNS - Head & Shoulder | BEARISH | 🔴
🔹REC - Rectangle | 🔵
🔹iHNS - inverse head & Shoulder | BULLISH | 🟢
Verify it first and believe later.
WavePoint ❤️
Daily Market Analysis - FRIDAY JUNE 23, 2023Events:
UK - Manufacturing PMI
USA - FOMC Member Mester Speaks
USA - FOMC Member Bostic Speaks
USA - FOMC Member Bullard Speaks
USA - Services PMI (Jun)
During Thursday's trading session, the S&P 500 and the Nasdaq displayed upward movement, propelled by the statements made by US Federal Reserve Chairman Jerome Powell. Powell's hawkish stance indicated that the central bank's tightening cycle was not yet complete, instilling confidence in investors. However, he also emphasized the Fed's commitment to exercising caution in its approach to monetary policy.
The Nasdaq, known for its heavy concentration of technology stocks, experienced significant gains. This surge in the index was primarily driven by the momentum stocks of prominent companies like Amazon.com (NASDAQ: AMZN), Apple Inc (NASDAQ: AAPL), and Microsoft Corp (NASDAQ: MSFT). These tech giants showcased impressive performance, contributing to the overall positive sentiment in the market.
On the other hand, the progress of the broader S&P 500 index was more modest compared to the Nasdaq's surge. While still displaying positive movement, the gains in the S&P 500 were not as pronounced as those in the technology-driven Nasdaq.
In contrast to the S&P 500 and the Nasdaq, the blue-chip Dow Jones Industrial Average (Dow) remained relatively unchanged. The Dow is composed of large, established companies from various sectors, including industrials and financials. However, during this particular trading session, these sectors had a minimal impact on the index's performance.
Overall, the market sentiment on Thursday was largely influenced by Powell's statements, which offered a mixed perspective. While indicating a continued tightening of monetary policy, Powell also reassured investors about the Fed's cautious approach. This combination of factors led to varying degrees of upward movement in different indices, with the Nasdaq taking the lead, followed by the S&P 500, while the Dow remained relatively stable.
NASDAQ indice daily chart
S&P500 indice daily chart
DJI indice daily chart
During his appearance before the Senate Banking Committee for the semi-annual monetary policy testimony, US Federal Reserve Chairman Jerome Powell reiterated his stance on the likelihood of further interest rate hikes in the near future. This statement reaffirmed his belief in the need for continued tightening of monetary policy to address potential inflationary pressures and maintain economic stability.
Powell's perspective on future rate hikes was echoed by Fed Governor Michelle Bowman during the session. The alignment of views between Powell and Bowman highlights the consensus within the Federal Reserve regarding the potential necessity of raising interest rates as part of their ongoing efforts to carefully manage the country's economic growth.
The reaffirmation of this belief in further rate hikes signals the Fed's commitment to a proactive approach in addressing economic conditions and maintaining a balanced monetary policy. By emphasizing the likelihood of future interest rate increases, Powell and Bowman are providing transparency to market participants and indicating their intention to address inflationary pressures and promote sustainable economic expansion.
As the Federal Reserve's monetary policy plays a crucial role in shaping financial markets and investor sentiment, the reaffirmation of the potential for rate hikes in the coming months will likely influence market dynamics and investor decision-making. Traders and market participants will closely monitor future statements and actions from the Federal Reserve for further insights into the timing and magnitude of potential interest rate adjustments.
US initial jobless claims
In the economic landscape, the stability of jobless claims at a 20-month high reflects persistent challenges in the labor market. This indicates ongoing difficulties for job seekers and potential concerns about employment conditions. Additionally, the Conference Board's Leading Economic Index, which tracks various indicators to gauge the future direction of the economy, recorded its 14th consecutive monthly decline. This suggests that the Federal Reserve's efforts to moderate economic growth are starting to have the intended impact of slowing down the overall pace of expansion.
Meanwhile, the Bank of England (BoE) has made a decision to accelerate the pace of interest rate hikes during its 13th meeting under its tightening policy. This move has received mixed reactions from different stakeholders in the financial markets. Households, bond investors, stock investors, and foreign exchange (FX) traders have expressed their disapproval of the BoE's decision. This dissent stems from concerns about the potential impact of higher interest rates on borrowing costs, investment returns, and currency valuations. These stakeholders are closely monitoring the consequences of the BoE's actions and adjusting their strategies accordingly.
The BoE's decision to hasten the pace of interest rate hikes highlights their focus on managing inflationary pressures and ensuring economic stability. However, the varied reactions from market participants reflect the complexity and potential trade-offs associated with monetary policy decisions. As the effects of the BoE's actions unfold, it will be crucial to monitor the implications for different sectors of the economy and assess how market dynamics and investor sentiment are influenced by these policy moves.
UK interest rate
Despite the stabilization of the 2-year gilt yield above the 5% threshold, it failed to receive a substantial boost. This can be attributed to concerns among market participants regarding the potential negative consequences of the Bank of England's (BoE) proposed additional interest rate hike of one full percentage point. These concerns mainly revolve around the potential impact on the British economy, particularly in the property market. The anticipation of such a significant rate increase has dampened investor sentiment, leading to a cautious approach.
In parallel, the 10-year gilt yield has experienced a decline in response to the prevailing gloomy economic outlook. This decline reflects market expectations of a challenging economic environment and a lack of optimism regarding future growth prospects. The declining yield suggests that investors are seeking safer assets amid uncertainty, resulting in increased demand for long-term government bonds.
The possibility of Britain avoiding a recession, let alone a property crisis, appears increasingly unlikely in light of these developments. The market sentiment is shaped by concerns about the potential adverse effects of higher interest rates on the property market, which is a key sector of the British economy. This sentiment is further fueled by the prevailing economic uncertainties, both domestically and globally.
Turning to the FTSE 100, the index has approached the 7500 level. However, trend and momentum indicators are displaying negative signals, indicating a bearish sentiment in the market. Additionally, the index is nearing oversold conditions, suggesting that it may be due for a potential rebound or period of consolidation.
FTSE 100 daily chart
The performance of large British companies has been negatively impacted by falling energy and commodity prices, influenced by a relatively weak reopening in China. This year, these factors have contributed to bearish pressure on the companies, and the situation has been further intensified by rising interest rates. Until there is a rebound in global energy prices, which is yet to materialize, the outlook for the FTSE 100 remains neutral to negative. The market will closely monitor any developments that could potentially improve the prospects for energy prices and subsequently impact the performance of the index.
Interestingly, in response to the 50 basis point interest rate hike, the pound depreciated instead of appreciating, contrary to the typical expectation. This reaction reflects the sentiment of the market, which believes that the challenges and uncertainties facing Britain outweigh the potential positive effects that higher interest rates could generate. The prevailing concerns and uncertainties surrounding the British economy have outweighed the impact of the rate hike, leading to a depreciation of the pound.
Turning to the gold market, prices experienced a slight decline on Friday, signaling a potentially challenging week and heading towards their worst performance since January. This decline can be attributed to the significant rate hike by the Bank of England, coupled with hawkish signals from the Federal Reserve. These developments have raised concerns among investors about the prospect of tighter monetary conditions. Market participants will closely monitor any further signals and actions from central banks, as they have a significant influence on gold prices.
XAU/USD daily chart
Gold prices have reached a three-month low, breaking out of a narrow trading range observed over the past month, but unfortunately in a downward direction. This decline in gold prices indicates a shift in market sentiment and a potential weakening of demand for the precious metal.
Looking ahead to Friday's session, investors will closely monitor the release of preliminary manufacturing and services Purchasing Managers' Index (PMI) data. These indicators provide valuable insights into the health and performance of these sectors, serving as important economic barometers. The PMI data can influence market sentiment and investor confidence, as it offers a glimpse into the overall economic activity and potential growth prospects.
In addition to the PMI data, market participants will also pay attention to speeches from several members of the Federal Open Market Committee (FOMC), including Bullard, Bostic, and Mester. These speeches have the potential to shed further light on the monetary policy outlook and provide clarity on the Fed's stance and future actions. The comments made by FOMC members can significantly impact market expectations, especially regarding interest rates and overall monetary policy direction.
Overall, Friday's session is expected to be influenced by the release of PMI data and the speeches from FOMC members. These events will shape market sentiment and provide crucial insights into the current economic conditions and the potential future trajectory of monetary policy. Investors will closely analyze these developments to make informed decisions and position themselves accordingly in the market.
DOW JONES Double buy entry on the MA50 and MA200 (1d).Dow Jones got heavily rejected on Resistance (1) and is pulling back to the MA50 (1d).
The index is trading inside a double Channel Up pattern.
The MA50 and MA200 (1d) each serve as a Support level and potential buy entry.
The pattern so far is much alike the December 20th - January 20th fractal and that dipped much lower after its rejection.
Trading Plan:
1. Buy on the MA50 (1d).
2. Sell if the (1d) candle closes under the MA50 (1d).
3. Buy on the MA200 (1d).
Targets:
1. 34530 (Resistance 1).
2. 33000 (MA200 1d and bottom of white Channel Up).
3. 34800 (under Resistance 2).
Tips:
1. The RSI (1d) is printing an identical pattern to December - January so far. This favors a rebound but from a lower level such as the MA200 (1d).
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Notes:
Past trading plan:
Update on #SP500 #SPY #SPX #ES1!My alternative count I came up with a week ago is getting increasingly likely. I will No trading for me here so far. Watching developments and will discuss them in details in Weekly Update.
dow Forecast The forecast for the Dow Jones is that we have a very strong fall ahead.
As it enters a new stage before the US data
be careful
DOW JONES Crossed under the 4hour MA50. Short term sell signal.Dow Jones has crossed under the 4hour MA50 and hit the bottom of the short term Channel Up.
Since December, every closing under the 4hour MA50 has been a sell signal (8 times) with a decline ranging from -1.66% to -4.74% from the moment of crossing.
As long as the Channel Up holds, buy and target Resistance A at 34900.
If the Channel Up breaks, sell and target Support A at 33400.
Then since that Support is near the bottom of the long term Channel Up started in March and represents a -2.00% decline from the MA50 breaking moment, buy for the medium term and target again 34900.
A very consistent buy signal is when the 4hour RSI enters the green Oversold Zone. That has issued a rebound back to the 4hour MA50 on all 7 occurrences since December.
Previous chart:
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DOW JONES on the 4H MA50 on the Channel UpDow Jones touched the 4H MA50 and bottom of Channel Up 2 that is dominating June's price action. Naturally, the 1D technicals are bullish (RSI = 63.354, MACD = 250.370, ADX = 14.024) and the 4H ones marginally neutral, which indicates a short term buy opportunity.
With the 4H STOCH RSI making a Bullish Cross inside the oversold zone, that is technically a buy signal at least on the short term. The next technical Resistance is R2 and that's our target (TP = 34,950), which is also the Top of December 13th 2022.
If the candle closes under the 4H MA50 though, which would also mean crossing under Channel Up 2, we will short targeting the 4H MA200 (TP = 33,500).
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DJI Dow Jones Next Possible MovePair : DOW JONES ( US30 - DJI )
Description :
Bullish Channel as an Corrective Pattern in Short Time Frame
Divergence
Exp FIAT
Break of Structure
Falling Wedge in STF with the Breakout of UTL
Completed " ABC " Corrective Wave and " 12 " Impulsive Wave
🅱️ Bitcoin, The Stock Market (SPX, NDX, DJI), USDT.D & AltcoinsI like to browse through charts between different markets in the search for confirmations and correlations.
One of my favorite types of confirmations is Bitcoin and the Stock Market.
We know that these have been moving together but Bitcoin is leading the way.
While the SPX is still below its August 2022 high, Bitcoin already broke that price...
Let's have a closer look:
💾 SPX Closes On Strong Bullish Bias +Bitcoin & Bank Crisis
Notice how in the chart above the SPX bounces exactly in mid-March.
On Friday it closed full green with a 10-months high.
The RSI is really strong and all looks good.
If the correlation continues then we are set to start this week green.
Unless the SPX and the rest of the charts I will show you below crash on Monday.
Then we have the Nasdaq, it is the same situation.
Bitcoin has been consolidating but the NDX went ahead.
This alerted me of the SPX moving forward and the rest of the markets as well... See the chart:
💾 Nasdaq Went Ahead | Next Target Above 15,555
The NDX hit a more than a year long high when it peaked around its April 2022 resistance.
Not actually peaked, this is a new bullish breakout just taking place.
The week closed full green.
I am thinking that Bitcoin is set to follow unless the NDX crashes on Monday but so far it looks good.
The DJI stood behind.
While it is trading below its August 2022 high this level has been challenged continually and we know that it will follow the other two indexes, they always move together.
Last week closed full green above EMA10 and EMA21.
See the chart:
💾 DJI
Then we have the inverse correlation with Tether Dominance, USDT.D and this one is a bit more tricky because of the mixed signals.
First, the chart:
Favoring the Bitcoin bulls, we have more than a year of lower highs and what seems like a distribution phase, volume dropping since May 2021, two years.
Weaker signals in favor of the Bitcoin bears is the fact that the weekly session is still trading above EMA10 and EMA21.
We also have the Altcoins that we can use.
What one does, the rest follows; that's one for the bulls.
We also have some smaller pairs and ALTSBTC pairs growing, something not seen when in a bearish phase.
Look at XRPUSDT, it went ahead: ✴️ Ripple's XRP Inverse Head & Shoulders Confirms Higher Low
Litecoin is on a similar situation.
We have pairs such as ChainLink and EOS whom went through a full correction and this is kind of mixed.
If what one does the rest follows, it can mean that Bitcoin is yet to go through this huge correction or that these pairs being weaker dropped more than the stronger ones.
When we take all the signals in consideration, the bulls are on top.
Of course, this doesn't mean anything if you are looking at the short-term... When focusing on the bigger picture, Bitcoin is set to continue growing, higher highs and higher lows in the weeks and months ahead!
Thank you for reading.
I am wishing you a lovely Sunday... Or Monday if you read this after today.
Namaste.
💾 DJIThe Dow Jones have been left behind compared to the SPX and NDX but the chart still looks pretty good.
We have a hammer 25-May after a months long correction, followed by a full green candle. This is a reversal signal with confirmation the next day.
We just need to see follow up on Monday but looking at the three major indexes together, SPX, DJI and NDX, we are going to call it bullish.
The blue spaces on the chart is the strong support.
The DJI is trading within a long-term higher low.
The bias is 100% bullish.
We will see how it goes but we expect it to grow in the short-term based on the current look of the chart.
This can change if the support levels break.
If support remains intact, up we go!
Namaste.
DJI - Bullish H & S pattern #stocksMarket sentiment has changed with the fed pausing interest rate's.
possible we see this bullish move, but this doesn't mean Bull market.
zooming out you can see, this will break ATH and possible to complete an old wycoff accumulation extension.
My thoughts.. we may get the break out from all time high with the fed easing, but this is likely to be a bull trap!
Im still expected the Dow to take out the lows, later on in the year possibly when we see further rate hikes!
Suspected a recovery based off a W pattern I see forming on the US30, link attached below.
Originally I was very bearish once the price rejected 0.702 fibonacci retracement levels twice.
now its very possible to see a bullish recovery, will do great for market sentiment! but I would be very weary once this H & S completes this pattern.
DOW JONES rebounding on the MA50 (4h) aiming at 34750.Dow Jones has had a strong rebound on the MA50 (4h) since the Fed low yesterday and maintains the short term Channel Up.
There is still much room for the index to rise inside the long term Channel Up.
Trading Plan:
1. Buy on the current market price.
2. If the price crosses under the Channel Up, buy on the MA50 (1d).
Targets:
1. 34750 (Rising Resistance).
2. 34900 (Resistance 2).
Tips:
1. The RSI (4h) has its own Rising Resistance to be mindful of. The last two contact points with it, formed Higher Highs on the short term Channel Up.
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Notes:
Past trading plan:
DOW JONES The closing of the 1day candle can send it to 34900Dow Jones/ US30 hit yesterday Resistance A (34260) but closed the candle under it.
If it closes over it, especially if the Fed assists with favorable news today, buy and target Resistance B at 34900.
Until it closes over it, a rejection is equally possible, with the 1day MA50 being the lowest buy entry in the event of a pull back.
The 1day MACD is still on a Bullish Cross, showing a healthy bullish trend.
Previous chart:
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$DJI back at this area, now what? DJ:DJI has had issues in this area many times before
Getting overbought, been here a few times in 2023
1 Jan - Feb RSI Neg divergence took entire month to work out
2 RSI was already rolling over when it peaked
3 RSI is again in this area & the 4Hr chart doesn't look like the RSI is weakening, interesting
See volume where rally started?
Will the DOW break through or bounce back?The DOW is at an interesting level now.
It nearly touches the upper side of a triangle. If it breaks through, there is a resistance zone waiting.
What's next?
Will the DOW break through the triangle and resistance zone or bounce back?
Will this be a short chance while summer is looming?
Disclaimer:
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations
SP500 UpdateI will not pretend I understand what is hapenning in SP500 at the moment. I assume this is as per previous post because the count on a lower timeframes is almost impossible to guess. That is often a good sign of B or X waves.
Us30 - Possible sellI want to think about a sell position around the supply area, but I don't want to jump blindly into that.
I need more confirmation that this area wants to push the price below. So I will wait to see my sell setup loud and clear.
DOW JONES: Levels to trade for continuation of rejection of the Dow Jones is bullish on a 1D MACD Bullish Cross with all of its 1D technicals in deep green (RSI = 60.720, MACD = 99.160, ADX = 23.397). This short term bullish trend is almost the same as April's that was later rejected at the top of the long term Channel Up. Consequently, we are selling at the top, targeting the bottom (TP = 33,300) of an emerging Channel Up pattern.
If on the other hand the index crosses over the R1, we will take the loss on the sell and go long, targeting the top (TP = 35,200) of the Channel Up, unless the price closes under the 1D MA50 earlier, in which case we will book the profit earlier.
Prior idea:
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