Use the red line to determine whether Monday morning’s steep selloff was just a shakeout. If DIA ends the day above that line, a ‘midpoint Hidden Pivot,’ then I can practically guarantee you that the thrust will continue to at least 202.35, the ‘D’ target of the pattern. For those who are familiar with my ‘mechanical’ entry technique, that would imply possible entry opportunitie(s) at level x, p or p2. Stay tuned to the chat room if you seek guidance in real time, since many regulars in the room will know exactly what to do with this one if it unfolds in the way I’ve described.
Is the Selloff Just Another Fake-Out?
- January 31, 2017, 5:53 am
The extreme low volatility (VIX closings levels at 10.50 recently) along with a 1.4% Donchian trading range (the tightest range since 1885 in the INDU), along with the recent daily ‘Cross Island Reversal’ in the INDU and SPX is a stamp of a longer turn to the larger degree.
30,000K INDU by way of Barron’s…is a cherry on the ice cream cone.
****The finial signal will be as towards the long term stat of having a 20 or 40 trading day high point, with starts off a decline of a 4% downward move from a extreme high to low in a 5 to 7 trading day period.
****Observe INDU 18138.82 price level intraday that creates a 20 trading week low point.
Observing this level for 1-3 trading days with creating a 20 trading WEEK low point, will trigger the move into a long term Bear Market.