Right off the top, I hooked it up on those top and bottom just to see what's going on in this movie, and it's looking like we started off with the downward bounce this morning, which confirms the appropriation of this chart whipped up last night.
I mean, it was either going to turn away from the fib line at 23.6% or
it was going to break through the top. DOW decided to back off the bounder and recede into itself.
What's this mean? Well, it means what it always means, and at the end of the day, I think we'll come to express more consolidation. Simple as that.
So, yeah we've got this this milk heading right towards the nipple, letting it build up and where it breaks out from there, the magic teat will either shoot it up or down. Follow the milk.
As for all these other bozos already calling for a breakout because of a "W"..Yeah, that ain't gonna happen for a while. Maybe if the index reverses course mid-day and jumps 200 pts, sure, but it ain't gonna happen.
But what the hell. What do I know anyhow, right? I'm just a squalid zit-faced teenie bopper beating meat to some charts in my mother's basement. While I'm down here, I might as well get on to the RSI:
The popped its head up to look around for the 'overbought' police. Unfortunately, he was caught trying to break through across the border...Illegally, I might add. Why was it illegal? Because Trump boosted the indices by pretending he and China worked something out at the negotiation tables. I got news for you, it ain't gonna happen. Trump getting autos to tentatively be delivered duty-free in china isn't an accomplishment. Unless the government intends to subsidize factor and plant to be built overseas on GM and Ford's behalf, that market ain't getting penetrated. They're overweighted and levered too hard on the balance sheets and that market wants nothing to do with our truck & SUVs. But, you know, it works for Trump. He can rub this in GM's face like something good's gonna happen; it ain't.
All things considered, we need to keep an eye on that alleged ABCDE correction. If we're going down from here, then we've got the (D) to look forward to. Most ladies do with me ;). From the (D), maybe we'll bounce near that fib line getting snug with the bottom trend. I know one thing; those two like each other enough to really make some heat with the door open, which is why I suspect the DOW will walk in on them, get freaked and run out of the house questioning his existence.
Then there's (E). (E) is in the business of making stars out of people. Get it good with (E) and the sky's the limit. Get weird on him and he'll kick you into a ditch. Why? I don't know. It's Hollywood, baby.
All we really need to do here is know that we're going to have to be patient and see where the break out or breakdown takes shape. The decision will take time, but one way or another something is gonna happen.