The point ‘A’ high shown in the chart is not of the highest pedigree, but I’ve used it anyway because it corresponds to a p midpoint pivot where the downtrend has stalled very precisely. As always, a move through clear support would imply more downside to the ‘D’ sibling — in this case a 1634.50 target that corresponds to a drop in the Dow of about 150 points. Because the midpoint has actually been exceeded by a single tick, traders — night owls, presumably — should position from the short side. Shortly before 2 a.m. EDT Monday, there were some serviceable patterns that would have worked, but with no follow-through due to DaBoyz’ apparent reluctance to trash the so-far overnight low at 1649.50. This suggests that they are waiting for news to drive shares one way or the other. If the initial move is higher I’d suggest fading it, since bulls have shown no gumption in weeks, and for good reason.
