Both the Dow and the Wilshire produced yesterday P&F breakdown, the SP was already in bearish mode.
The Dow will have to touch the 12250 level on an up day to reverse the bearish signal.
The Dow traded below 12000 yesterday but managed to close above that level.
For the past 6 days both 12200 and 12000 were touched 3 times, the price-volume bar confirms the importance of this range.
The flag formation of the Dow has a bullish connotation, a close above the upper line will produce a top price around 12500. Personally and looking at the inability of the Dow to hold below 12000, I think the end of this reversal that started on October 4 will be around 12500. Close to that level I will add to my short positions but I really would be very satisfied if the Dow starts wave 3 without reaching it.
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- Erick Stern
- I am a civil engineer who likes charts, to me, speculating in the markets is both a hobby and a second profession and in my view the stock market is the most honest environment, since it is only your knowledge and preparation that matters. I live, and work in the construction industry, in the Dominican Republic. I read and answer all my mail so please feel free to write email@example.com Thanks, Erick