DJIA – Dow Industrial Average (Last:10320)

Dow Industrial Average (DJIA) price chart with targetsThe Indoos may have seemed resilient yesterday, but they got shoved down far enough intraday to extend Wednesday’s selloff into a bearish impulse leg on the daily chart (see inset).  Predicting where to get short for the next leg down would be a shot in the dark at the moment (i.e., Thursday night), since the Dow could rally to as high as 10474 before it sevens out. In any event, I’d suggest using the 15-minute chart to jockey into position to short the 3- or 5-minute chart via “camouflage.”  The “15” divulges, for one, that yesterday’s 10269 low still has 50 points to go before it reaches a clear (clear enough to bottom-fish with a very tight stop-loss, if you please) target at 10219 (A=10678 on August 10 at 4 p.m. EDT; B= 10428 on August 11 at 10 a.m.)