DJI WEEKLY - FIB RETRACEMENT - CORRECTION MODE - MEGAPHONE

Following along with the MEGAPHONE theme from a previous chart taking the first touch of the MEGAPHONE TOP, as the top. Being a weekly chart, we need to see the weekly close below the RIBBON for CONFIRMATION that we are indeed heading into a period of CORRECTION. Given that the FEDERAL RESERVE will meet next week and have already stated that they will not move in to bolster the stock market I hazard a guess that the DOW will continue its current downward trend. As we all know the FED is slow to respond as that is the nature of the data cycle, they are at least 3-6 months behind real-world. We also need to keep in mind that the FED is an INFLATION fighting mode which means they will be announcing a rate rise of 25 basis points at the very least for a MARCH START, which the market has already priced in. My gut feeling is that they need to raise rates by 50 basis points to douse inflation, which the market has not priced in.

We have a CHINESE NEW YEAR coming up and harsh WARNINGS FROM the WEF and DAVOS.

Take care and stay safe.

NOT FINANCIAL ADVICE