Dow Retrace to Allow Buyers to Exit and Sellers to Short Bigger.
Markets should bounce back enough today to let people ease up losing positions.
The Dow is down about 3% from when I flagged it as a selling opportunity last Friday.
Although the smallest part of the move, the final push lower yesterday from 28,800 to the low of 28,400 is the part that gives us hints this can sell more. I said the level the price stopped selling was the critical level here yesterday
The market has held sideways on this level for a while, but seems like it might make a break higher and retrace the move down. This will give buyer were too whimsical about the risks they are taken to reduce their positions and for sellers to add shorts.
I am pending to sell more Dow 29,000 with stops above the highs. Buyers should be aware of the risk in another bearish breakout. If we break the lows made here we can move into a far stronger down move which based on this first move will probably be about 5% more down - at the very least.
The Dow is down about 3% from when I flagged it as a selling opportunity last Friday.
Although the smallest part of the move, the final push lower yesterday from 28,800 to the low of 28,400 is the part that gives us hints this can sell more. I said the level the price stopped selling was the critical level here yesterday
The market has held sideways on this level for a while, but seems like it might make a break higher and retrace the move down. This will give buyer were too whimsical about the risks they are taken to reduce their positions and for sellers to add shorts.
I am pending to sell more Dow 29,000 with stops above the highs. Buyers should be aware of the risk in another bearish breakout. If we break the lows made here we can move into a far stronger down move which based on this first move will probably be about 5% more down - at the very least.
Comment:
Might be as high a we get right now. I am starting to sell Dow again 28,667.