Smart Money Has exited the Industrials in a big way since the high in January. Last time the SMI was this low the DOW was at 18000, a whole 7,000 points lower... This is never a good sign, but if the market can resolve this symmetrical triangle in a bullish, that money will pour back into the market and push it to new highs.
The Red areas marked are likely areas of resistance, while the green boxes show previous areas of high market volume. If this triangle resolves bearish, look for price to hold at one of these previous levels. Without dramatic news, or some major global event, the lower marked levels are not likely.
Volume decline is common in a symmetrical triangle, but we did have some higher highs inside there with volume declining.
Just waiting and watching with the smart money.
That volume bump after the the election is wild... Orchestrated... A coincidence.... ?
The Dow is still in a Bullish Trend, so the symmetrical triangle is likely to break bullish - but it is worth keeping an eye on.
Comment
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Possible rejection/fake break and Oscillators + Momentum pointing down for another test of the Support.
This is fifth wave in symmetric triangle. Expect pullback to test 24400 support at rising base trendline. If it reaches down to trendline test expect bottom ~24240.
Pulldown may be subject to possible bull trap test of triangle top trendline; former support becoming resistance around 25127 at 0.50 Fibo (although we saw this Friday).
Symmetric triangles are tricky beasts and can go longer than you expect but we're close to the apex and I suspect your idea of a strong breakout topside may come in August.
SPX has shown a well-defined rising channel and pullback there might be less, possibly ~2746, give or take a little. The bull wave coming off lows for SPX & NDX will be stronger than Dow.
Good luck!
Nevermorejk
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@DaddySawbucks, Amazing how this played out. Had a pull back and bounce right at symmetrical triangle apex before continuing down and forming a classic DOW theory SFP
DaddySawbucks
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@Nevermorejk, Sorry- SFP? Pivot? If Monday was 'the bottom' then I called +100, dangit!
Pulldown may be subject to possible bull trap test of triangle top trendline; former support becoming resistance around 25127 at 0.50 Fibo (although we saw this Friday).
Symmetric triangles are tricky beasts and can go longer than you expect but we're close to the apex and I suspect your idea of a strong breakout topside may come in August.
SPX has shown a well-defined rising channel and pullback there might be less, possibly ~2746, give or take a little. The bull wave coming off lows for SPX & NDX will be stronger than Dow.
Good luck!