For now, we held lower parallel support. However, I'm leaning on the prospect of more downside for now.
The markets are telling us something: there is clear concern over the mid-term elections. If Democrats win, I'm sure that would pour water on stock market fundamentals. The Democrats seem to be in a state of emotional meltdown. Any Democratic victory may render the United States uninvestable. As the crown jewel of American industry, the Dow Jones may enter a serious bear market.
However, I do not foresee that happening. I foresee a Trump victory - not only in the mid-terms, but for 2020.
So, stay with the trend. There will be an amazing buying opportunity soon. Should last week's low give way, it opens up the possibility of falling to the year's lows. Even better: we take out the February low WITHOUT closing below it, on a weekly or monthly basis, creating a severe snap-back rally. THAT would be an incredible trade.
I am the Dow Jones long term. I am the Dow Jones in the medium term. But bullishness must be fueled buy the consensus being on the wrong side. We MUST create the conditions that prompt the majority to believe that stocks will go down, in order to go up.
This could be a period of sideways consolidation, in a large range. Or it could mean a spike down that 'washes' everyone out, catching them flat-footed.
Such a move is possible. Was last week the spike? For now, I think not, as I believe the markets are awaiting confirmation in US politics in November.
I await a signal to enter a full position long. As long as we remain below the 25760 area (prior support turned resistance) on a closing basis, I will be taking short scalps, ready to roll into a long.