As powerful as Friday’s rebound may have seemed, the Dow Industrials had not exceeded a single prior peak on the hourly chart when the dust settled. The rally will have to get past a second at 25185 to generate a bullish impulse leg on the chart shown, and to surpass Feb 1’s 26306 to equal that feat on the daily chart. We should tune out the hubris until this happens, but without waxing too skeptical about the possibility, since there is still enough violent energy in the markets to accomplish just about anything imaginable in the space of a single day.
Rebound Less Impressive Than It Seemed
- February 12, 2018, 12:49 pm
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February 12, 2018, 4:36 am
The Dow high of 26684 produced a pretty big “failure gap” on the weekly chart, coupled with a 3,000 point drop is the coup d’etat moment for all those permabears and spells the end to this bull market. Most will not believe it and that is why we will see another large rally over the next 5 to 12 months, however do not be fooled for this is just the wind up pitch before the real selling begins. I see the DJIA somewhere in the neighborhood of 15,000 to 13,000 points by year end 2019.
One should observe .96755 JYP for a low in the INDU/SPX U.S. share market.
From this base JYP level, support will be in place and the unraveling to come not much latter.
Have a great day Rick.