Surprise, surprise. I presented the pattern shown when the Dow was trading 500 points higher and this vehicle was at 168.94. Lo, the bottom of last week’s steep plunge occurred at 163.00, a mere 21 cents from the midpoint Hidden Pivot support noted at the time. This affirms my earlier assertion that the pattern would work like gangbusters to precisely nail the swings in this vehicle, both up and down, for weeks to come. Now, a timely implication is that if support at 163.21 fails, we can confidently assume DIA is headed down to the secondary pivot at 155.02. That would correspond to an 800-point drop in the Industrial Average. Traders should position accordingly. As always, the best source of information in real time about how to do this can be found in the chat room, so stay tuned! ______ UPDATE (January 11, 9:12 p.m. EST): DIA rebounded weakly off a 162.15 low yesterday, but the 1.06-point overshoot of our target was sufficient to cast the rally in a suspicious light. Accordingly, you should look to get short at midpoint pivots or D targets of minor abc uptrends. An alternative entry tactic would entail initiating a ‘mechanical’ short on a rally back up to p after it has been decisively exceeded to the downside for several consecutive bars. I’ve sketched his hypothetically for your further guidance.
