The Dow Jones hit historical maximums. I believe this is just a bull trap and a big fall is on the cards.
We see on the chart a big RSI divergence and the price printed somewhat of a doji just before season earnings started. Also MACD (not in picture) confirms the bearish momentum. It has been reported that earnings this quarter are going to be pretty bad and the Fed rate cut has probably already been weighted in.
A fall to the 26700 area will happen in a quick way. I believe the correction will be stronger and a fall all the way to the 25400 area is very very plausible.
I am ready to short this market at the minimum retracement.
Do you have different ideas? Let me know in comments!
We see on the chart a big RSI divergence and the price printed somewhat of a doji just before season earnings started. Also MACD (not in picture) confirms the bearish momentum. It has been reported that earnings this quarter are going to be pretty bad and the Fed rate cut has probably already been weighted in.
A fall to the 26700 area will happen in a quick way. I believe the correction will be stronger and a fall all the way to the 25400 area is very very plausible.
I am ready to short this market at the minimum retracement.
Do you have different ideas? Let me know in comments!
Comment:
After a recovery on Thursday we saw another sell off on Friday. DJI has now broken the 50MA on the 4H chart and it is ready to drop until either horizontal support or the 200MA hits the price. Happy days!
