The DJIA looks like it may fail to make a new high and start to fall through the day. If this happens, it could make the start of a more significant downtrend in the US indices starting. I have increased my shorts on Dow and S&P at 29,200 and 3,300. I continue to use the same strategy of stops a bit above the high to prevent from risks of breakouts.
If this is to be the start of a bigger move in indices there are themes we should see in the falls. There should be a lot of downside momentum. Rather than drifting lower the market should move in faster bursts when breaking lows. Corrective patterns in short term price action should lean more toward ranging sort of patterns. Any moves up will probably be fast moves that are short lived. The day would also probably close under the week's open. Giving us a bearish close to the week. If we see a larger fall and there being engulfing candles on the weekly close, this would be a more serious indicator.
US indices still trade close to ATH right now. Low risk can be taken with stops at ATH. If wee see substantial selling through Friday for a bearish close, we should probably pay attention to the possibility of that leading to more selling in the weeks ahead.
If this is to be the start of a bigger move in indices there are themes we should see in the falls. There should be a lot of downside momentum. Rather than drifting lower the market should move in faster bursts when breaking lows. Corrective patterns in short term price action should lean more toward ranging sort of patterns. Any moves up will probably be fast moves that are short lived. The day would also probably close under the week's open. Giving us a bearish close to the week. If we see a larger fall and there being engulfing candles on the weekly close, this would be a more serious indicator.
US indices still trade close to ATH right now. Low risk can be taken with stops at ATH. If wee see substantial selling through Friday for a bearish close, we should probably pay attention to the possibility of that leading to more selling in the weeks ahead.
