The Diamonds spent the week lollygagging, making no progress toward a 345.33 target aired here earlier. It remains valid nonetheless, and is an odds-on bet to be reached because of the way the C-D leg of the rally gapped through the 332.98 midpoint Hidden Pivot. A corresponding target sits at 34,549 for the Dow Industrials, but we’ll focus on this ETF vehicle in order to get short with little risk. We can do this in two ways: an odd-lot sale triggered via a small-degree ‘rABC’ pattern; or the purchase of put options if and when 345.33 is very closely approached (i.e., within less than 0.50 points). For now, trade with a bullish bias, since 345.33 is our minimum upside objective for the near term. ______ UPDATE (Apr 30): Yet another week of tedious sideways scuddling left the analysis and outlook above unchanged. ______ UPDATE (May 4, 5:18 p.m. ET): With the Nasdaq and small caps getting socked, DaBoyz eked out a slight gain on the day in the Dow. This would seem to suggest that their oh-so-clever clever one-trick-pony — i.e., rotating money into the flavor-of-the-day/week/month — is working. However, they will not be out of the woods and will remain in jeopardy until such time as all of the broad averages are moving higher synchronously. Under the circumstances, we should be alert to the possibility of a bull trap rally narrowed to the Dow alone..
DIA – Dow Industrials ETF (Last:341.53)