Next Series of Falls Can Take Dow Down 10,000 Points
The relentless selling of the Dow has taken it through another two supports without any retracement. I think it's highly unlikely it will continue to fall without retracement and am looking for supports in around 27,000.
The rallies from here on may not the strong ones into new highs people have become accustomed to. We might start to see the highs getting lower and lower as the market continues to decline and the downtrend settles in.
Through the first move there will probably be a few of these rallies, and then a bigger bull trap one. If the next crucial support level is broken there might be a lot of selling with no pullbacks.
The rallies from here on may not the strong ones into new highs people have become accustomed to. We might start to see the highs getting lower and lower as the market continues to decline and the downtrend settles in.
Through the first move there will probably be a few of these rallies, and then a bigger bull trap one. If the next crucial support level is broken there might be a lot of selling with no pullbacks.
This is sure to calm some frantic bulls, but for a prepared bear the smell of a confident bull usually means there's money to be made.
What you need to understand about a bar market, is it is very similar to a drunk trying to get home.
It will fall. Pick itself up. Look shaky. Manage to stagger. Start to walk.
Whenever it looks like it tries to start to run, bet it falls flat on its face again!
Dow is up and staggering. When it starts to run, we sell.
28,500 is my estimated Dow sell. Probably may not happen for a few days. Patience is king.
Wait and watch. That's where the fortune is.