DOW Industrials sold off now 600 points and should face very strong support.
a) 13000 psychological barrier
b) 13080 100d
c) 12972 200d
d) Bull from lows Oct2011 via Jun2012
e) last support in Aug2012
My Target is not really far away because
a) 13250 is already 38% retracement from the latest sell-off
b) 13322 is the 50% correction of the same
c) 21st Aug 12 temporary top (which could well be a left shoulder of a potential formation given the 13600 top, but way to early to give this prediction)
d) the congestion resistance Apr /May
Market is short term oversold , and usually I prefer action after divergences, which we have on shorter time frames, not on the daily. I believe the odds are higher for a counter move and I look at the bigger picture later.
A S/L is a little subjective here, but a close (not an intraday low) or even worse a 2-day consecutive close below all those , MAs etc supports will certainly negate this counter trade.
anyway, my short term counter trend target has been reached, DOW Index traded 13273 and I got out of my longs.
I have or will NOT trail this long, because as I did mention there will be good resistance now ..
Looking for a short set up soon.