Friday, July 31, 2015
INDU Update: Market Enters Resistance
Yesterday saw the rally finally pause, but bulls bought it right back up again (or shorts did. Someone did!). Today, we're getting into territory where there could be some measure of resistance. I'm going to let two charts from INDU do all the talking today:
And a closer look at the potential micro structure:
SPX would be expected to follow a similar path (preliminary approximate target for B-down in SPX would be 2070-80). Unless the rally is going to tack on a fifth wave extension (which we can't predict in advance), then we should be in the ballpark where a correction would begin, ideally after an opening pop to a new high as shown on INDU's chart. Trade safe.
Posted by PretzelLogic at 3:28 AM