Dow Industrials (last: 7920)

a-rally-to-8343-in-the-dowBefore yesterday’s moderate selloff, we were looking for the Indoos to complete a minor rally pattern to 8343, a Hidden Pivot target. The target remains valid because the point ‘C’ of the pattern, 7751, is very much intact.  Moreover, we might also infer that the finishing stroke to 8343 is likely, since the midpoint resistance associated with that number, 8047, was demolished when the Dow shot up to  8113 on Monday. All of this is shown in the accompanying chart. However, we can use the corrective pattern from Monday’s top to judge whether the bull may be waning. It projects to 7841, and if that Hidden Pivot support is breached Monday morning it would be a sign of more weakness to come.