Some big down moves imminent on US/Euro indices?

Last week's shooting star on the Dow and S&P I drew attention to in the post above, did not, or so far has not produced the selling I thought it might, but, its high of 28,965 has not been reached yet, so until the price breaches it to make new highs, there is all to play for.

I know that everything points to higher prices on all the major US and EU equities with the amount of money printing going on by the central banks, and it is very hard to see otherwise, but having said that, the technical picture, even in this extreme current bull market, does suggest a potential market top, so we will have to wait and see whether last week's high can be breached, because if it can be, then I think we may well see further strong moves higher. For today on the Dow, I do have potentially strong resistance from around 28,914 - 930, we we'll see if this area can contain the price if it gets back up there.

With reference to the last post, have a quick look at the US Dollar Index, which is moving in step with equities at the moment. I have highlighted on a new thread how I think 2020 is going to be a very bad year for the dollar, through this link if anyone is interested https://www.forexfactory.com/showthread.php?t=971529, so looking short term for the next few days, here is a daily $ index chart showing what I think may happen. Momentum is down overall, and I see the past fey days of strength as nothing more than a pullback. Once the resistance level shown on the chart is reached, if it is reached, then I think we may see a rollover to new lows, which should, see corresponding down moves in US equities.

Update on the US dollar basket which I got completely wrong above. My mistake was not to check the Daily chart against the higher time frames, as both the weekly and the monthly showed a strong supporting set up, as you will see here.

So, I see further strength in the US dollar, although as the 2 day time frame shows, it could be at or close to some significant resistance right now, so we'll have to wait and see whether it can break above the 9,780 level. If it does, then I look to the weekly, then the monthly if the price breaks above the September 2019 high.

The monthly chart shows the range the price has been in since 2018. If the price breaks above this range, then I would expect the price to head for the 76.4% area @ 10,000, up to around 10,200.

You will see that on the monthly, my moving average sequence has been broken, so what was ABC up to 2018, is now BAC, an indication that the price will fall from B, if it gets up that high.

Time will tell.

Also, some very interesting developments taking place right now in the equity markets, but I want to wait and see how the month finishes off berfore I comment further on those.

Quick follow up on my last post. The monthly equity charts, especially the Dow, are showing big diversion patterns, the sort of diversion pattern I would be looking to short on my much smaller intra-day charts. Diversion on its own however is never enough to trade off, there have to be other confirmatory signals. I have these on my weekly charts which is why I have continued this thread even as the price has pushed higher, and I continue to believe that the possibility of a major pullback and perhaps even the high for equities before a major market crash ( this year or next ) is very strong indeed

Keep an eye on the monthly candle, because if it closes as a doji, which it is currently on Dow, or a bearish shooting star should the price fall further before the end of the month, then this, combined with the diversion, could trigger some big selling for February.

Here's the possibility.....

ps - pay no attention to where I've typed ' Triple top ', as that was written before the price broke higher

Continuing on from my last post, we now have a very bearish monthly shooting star, we have diversion, we have Coronavirus, and we have the biggest artificially inflated stock market bubble in history, so my money is now firmly on the down side, not a major stock market crash, yet, but the beginning of one. If the Dow can get back up to its high of 29,405, then all bets are off, but until it does, we have seen the top of the US stock market.

US500
I don't know if it's going down in the long run.
but I'm expecting a sharp rise.
h1. timezone

These markets know only one direction at the moment. All drops are bought back up off of support, and I cannot anticipate a change. Indecis are bullish on the monthly., and new highs are surely the only prospect for the short/med term. The Russell 2000 is yet to make new highs and is sitting on a potentially important resistance level, so watching that one.

I mentioned diversion on the Dow, but that is all there is to go on. Best just trade intraday and go with the flow. It would be nice to predict the top and get in short for the trade of the century, but that is every trader's dream I guess. It is a fantasy however, and not one which needs to be realized to become wealthy. There are plenty of opportunities each and every day for that if one has the right approach and method.

Good luck. Moist immediate resistance for the Dow right now is today's R1 @ around 29,580. Beyond that, who knows.