No surprise to me to see prices falling to start the week continuing where they left off on Friday. Short positions hoping for some big pips this week, I think the weekly 100sma on Dow could be re-visited over the course of the next week or so, and this is a major support level currently @ 25,400 or thereabouts, roughly 1,500 pips from the current price. For intra-dayers, the H4 200ema @ 26,686 looks to be a likely target today if the price can push below the 100sma which is currently holding as support @ 26,834.
Quite a few traders I know have been very bullish leading into this turn south, believing, wrongly I believe, that it is all up to the Fed and that the interest rate cuts were bound to send the markets higher, but price action and solid technical analysis seldom lie, and as retail traders we are always far better off trading only what we see on our charts irrespective of what is happening beyond them.
My latest Dow weekly chart, showing last week's very strong shooting star candle, and possible future projections.
Quite a few traders I know have been very bullish leading into this turn south, believing, wrongly I believe, that it is all up to the Fed and that the interest rate cuts were bound to send the markets higher, but price action and solid technical analysis seldom lie, and as retail traders we are always far better off trading only what we see on our charts irrespective of what is happening beyond them.
My latest Dow weekly chart, showing last week's very strong shooting star candle, and possible future projections.
1