DJI is now above both it's 200day MA as well as an intermediate trendline resistence. However, we are seeing bearish divergence between price and RSI on DJI's daily chart and with near term horizontal resistence coming up @ 34100-34300, we could have some pullback when it reaches there. Fibonacci retracements of 23.6% to 50% of it's most recent swing up will still be "acceptable" for the bulls and does not mean the market has turned bearish (unless we have a deeper pullback).
I suspect the low we saw in early Oct (28660) is "The" Low of this bear market as we saw a "tweezer bottom" / bullish engulfing candle on the monthly chart. Signals on the longer time frame (ie the "Bigger Picture") will be more powerful than on the shorter timeframe.
However, there is always the fear that FED could step in to brake any further upside, hence expect market to still be volatile and could also trade in a wide sideway range for a while (weeks/months?) before we can see the 200day MA flatten out and then start can turn up.
Meanwhile, DJI's further upside could slow down while Nasdaq begin to take leadership. As long as Nasdaq is taking the lead then the overall market will still be in a more bullish rather than bearish mood. Take one swing at a time. Have stops in place in case one is wrong.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
I suspect the low we saw in early Oct (28660) is "The" Low of this bear market as we saw a "tweezer bottom" / bullish engulfing candle on the monthly chart. Signals on the longer time frame (ie the "Bigger Picture") will be more powerful than on the shorter timeframe.
However, there is always the fear that FED could step in to brake any further upside, hence expect market to still be volatile and could also trade in a wide sideway range for a while (weeks/months?) before we can see the 200day MA flatten out and then start can turn up.
Meanwhile, DJI's further upside could slow down while Nasdaq begin to take leadership. As long as Nasdaq is taking the lead then the overall market will still be in a more bullish rather than bearish mood. Take one swing at a time. Have stops in place in case one is wrong.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!