Wednesday, February 28, 2018

INDU Update: Rally Stalls at Inflection Zone

Just a brief update today.

Last update warned that if the Dow Jones Industrial Average (INDU) reached 25,700-800, that zone would have the potential to stall the rally, and stall the rally it did.  Interestingly, the news media is blaming the stall on "JeRoman Emperor" Powell's testimony -- yet somehow the charts knew that price zone could be trouble before his testimony had even been given.

As I've said for years, the charts lead the news, not the other way around.

Whether this stall will prove to be more lasting or a temporary hiccup is unclear yet.  But either way, the charts do suggest that downside risk is now on the border of outweighing upside potential.

In conclusion, the market has reached its first upside inflection zone, and downside risk has begun to outweigh upside potential.  Trade safe.

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