If we look at the DJI we can see that on the chart the current price is jumping WAY outside the upper Bollinger Band and the 50 MA is actually above the midline of the Bollinger Band. That can signal a couple things.
1st the pricing being so far beyond the upper band means is due for a sharp downward correction towards the Midline at best and to the bottom band at worst.
2nd, with the 50 MA being above the midline of the Bollinger Band can signal that the local trend support is actually now future resistance. The trend of the bands has the midline the more likely of the 2 targets and that would put the dow in a local down trend in the short term.
Based on what the chart is showing me right now, I would say 31.5k Dow is way more likely to be hit before 34k dow. Depending on how long the correction last, it could be a catalyst for a bigger down trend with a much larger correction still to come later this year. Fed rate decisions, earnings data, lay offs, and a few more international trade issues like Yuan settlements, will play a large factor in the future larger correction timing.
@TheStockMarketSniper, Will do - till then I'll keep it loooooong and not if but when it changes/turns back down = close my long/s and go short/sell. I have been expecting a big (no crash - won't let that happen now) drop for a while (weeks and months) now and the markets have not come back close to 30k, and now sitting at 33 600 ....sure it will drop (sell-off/profit taking whatever) but not by much, and it will only serve as a 'tool' to move back up even higher. I just can't see what will bring the DJ back to 31 500 - I hope I'm wrong and you're right. Cheers Thanks for sharing