Thursday, October 15, 2015
INDU: Bonus Bear Chart
Just a super-short update, with a "bonus" bear chart today. If we take away all the fancy wave counts, we're left with this interesting back-test and rejection at the red neckline. Funny thing is, I drew this chart weeks ago, and just stumbled across is last night. The red line was already on it -- and so we do have to respect that, so far, it's acting like resistance. It's is worth paying attention to whether the market can make its way back up through the resistance of that distribution pattern at the top:
Not much more to add -- we do currently have enough waves down for a complete C-wave decline, if that's what the market wants, and futures are currently green. If that low breaks down in a significant fashion, then bulls should respect that as potential trouble -- vice-versa for bears if INDU can break back up into the topping pattern. Trade safe.
Posted by PretzelLogic at 1:00 AM