Weekly Analyses and RecapWelcome Traders,
Last week US30 gave a bullish impulse on Thursday Sep 19 following the announcement of the Fed Reserve interest rate cuts. Since then, price has been consolidating. Monday and Tuesday are notoriously known for low volume and consolidation there is no need to be rushing into trades Instead, I am using the time to allow price to reveal its hand on the direction.
There is no telling that US30 isn't at ATHs. However it is important to note that the markets have not had a bullish rally since the interest rate cut. Prior to rate cuts, the market anticipated a 25bp cut which was then over ruled by the announcement of a 50bp cut. Although the Fed Reserve later justified the 0.5bp cut, one would think that this would have come as a positive acting as a catalyst for bigger bullish rally.
This is an indication that market structure is signalling the fact that a correction is due. My directional bias for the week is bearish to signal a HL on the bigger TFs such as the 4H to retest the fair value gaps before resuming on the uptrend to ATHs.
Since the signalling of the Daily HL at 39,985.5 on Wed Sep 11, price has been very bullish for the past two week only signalling a 2H HL as the biggest timeframe with a type of low.
Although my bias is bearish for the week, it is common for price to have a bullish liquidity grab to sweep out the current highs at NYSE open taking out any early sellers.
If NYSE opens on Tuesday or Wednesday with a push to the upside, this push can serve as a key entry point for a sell position to take out the lows and restest a previous support.
If we do end up getting a correction, my TP of interest is at 40,991.4 at the 61.8% retracement level and previous resistance level where price broke out from.
