DJIA – Dow Industrial Average (Last:14975)

Monday’s short-squeeze was deftly engineered, since DaBoyz were able to bring the Indoos back to the approximate midpoint of the intraday range. This is a continuation pattern, and the effect is to leave bears on the ropes for yet another day of body blows.  The good news — for bears, that is — is that all of the price action so far has occurred in the context of a larger, bearish impulse leg created when last Monday’s bottom exceeded two prior, significant lows.  Now, if bulls are about to seize control in a big way, we’ll know it by the way in which the next down-leg interacts with whatever midpoint Hidden Pivot occurs. This is shown hypothetically in the chart,  and if things play out similarly to what I’ve sketched, the ‘p’ support will be a good place to bottom-fish aggressively with the usual, microtight stop-loss.