The DOW has come down a lot these past weeks but it still hasn't come down to devastating levels yet.
I published my daily chart for the DOW on March 14 which stated that when the triangle was breached a big move was imminent. Well the BIG move happened and now we have to capitalize on what we now have.
What we have:
What we now have is a market that has had about an 11% correction in 2 months which is notable but relatively common.
More importantly we have a market that has a major monthly support about to be tested.
What to do?
If you look at the monthly DOW chart, the monthly support typically holds and it either fully recoups within 2 months or trades sideways within that zone for a while.
If the monthly support fails a bigger correction will not be unheard of so be extremely cautious if it drops below 23,360 even for a second.
We have a risk of only 173 points with the market currently at 23,533. This is less than a 1% risk! Upside potential is 13% in 2 months. That's a 13:1 upside ratio! The choice as always is yours.
Let me know what you think.
I published my daily chart for the DOW on March 14 which stated that when the triangle was breached a big move was imminent. Well the BIG move happened and now we have to capitalize on what we now have.
What we have:
What we now have is a market that has had about an 11% correction in 2 months which is notable but relatively common.
More importantly we have a market that has a major monthly support about to be tested.
What to do?
If you look at the monthly DOW chart, the monthly support typically holds and it either fully recoups within 2 months or trades sideways within that zone for a while.
If the monthly support fails a bigger correction will not be unheard of so be extremely cautious if it drops below 23,360 even for a second.
We have a risk of only 173 points with the market currently at 23,533. This is less than a 1% risk! Upside potential is 13% in 2 months. That's a 13:1 upside ratio! The choice as always is yours.
Let me know what you think.
Comment:
The market is still bearish but the bulls may be testing a key short-term resistance area of 24,400 soon. An hourly close above this level should indicate a true changing of tides.