Above Weekly Pivot= bullish for the week
After closing last year very close to the Yearly Pivot and several weeks opening below the Weekly Pivot, the Dow opened above the WP and spent last week doing nothing until it fell to the WP, where it promptly rallied 700 points to close on the yearly DeMark pivot. We have some serious resistance overhead with monthly and yearly pivots 23700-24000, which ties in with a backtest of the previous lows and broken support. However if we open above the DM pivot it can be used as support to attack the traditional yearly and monthly pivot.
However- I take one week at a time and as long as price is above the weekly pivot I am bullish. As soon as it drops below I flip bearish. Think of them as stepping stones for price to launch off until it slips below. This prevents any bias or wasted energy predicting price movements, and guarantees that you are on the right side for every major move. If price clears 24000 it will be super bullish with 25131 and 26278 the targets. If we reject 21000 is the lower target.
However- I take one week at a time and as long as price is above the weekly pivot I am bullish. As soon as it drops below I flip bearish. Think of them as stepping stones for price to launch off until it slips below. This prevents any bias or wasted energy predicting price movements, and guarantees that you are on the right side for every major move. If price clears 24000 it will be super bullish with 25131 and 26278 the targets. If we reject 21000 is the lower target.
