I don’t think that DJI will be stopping at its previous February low, because the S&P still has space to drop before itself reaching its last low. So, I think that DJI will lose another 600 points to stop at 229 as it is the support trend line of the 2017 Bull Run (around that). If it drops more than that, then I would aim for 220 which would give us a clearly defined channel support line.
1. So, I will be looking for a double bottom formation and get in long at the second drop; 2. I will go short once the stock price reaches the resistance trend line or the price starts falling.
Thank you for your insights!
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A strong opening this morning; I will be looking to re-enter in a short position if the price reaches 242, which is the last low. We may see the same pattern than the first correction: dip, rally, deeper dip. Lets see.
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Could we have a double-bottom forming!? Your thoughts please.
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So basically tomorrow will be the moment of truth; the DJI is going up or down. We need at least a one hour candle sitting on 242 to confirm a double-bottom.
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Going up!
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242 didn't hold, back in lol
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So 242 didn't hold, the selling pressure is increasing (volume), SPY & QQQ still have a lot of room to give until they at least reach their February lows; basically, all the ingredients are there for the selloff to continue. Also, If we compare this selloff to February, we should be half way through. Both of these observations support my initial target of 229. Another -900 points in 2 days, not unrealistic. Let's see!
Im leaning towards more of a drop too, not immediately it should be a euphoric week or two
tipere445
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@sup3rjade, Look at the SPY chart, looks like we are going higher.
tipere445
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@sup3rjade, if we can sit a candle over 242, I'm gonna be long.
sup3rjade
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@tipere445, me as well. Forming some sort of triangle I see. The trade exhaustion seems obvious.
tipere445
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@sup3rjade, Double-top for VXX. I'm a natural pessimist, but for some unknown reason, i prefer when the market goes up lol.
sup3rjade
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@tipere445, you have to be a natural pessimist..lol keeps you on your toes. I’m going to take a look at the vix. I’m sure we are in a solid leg up though.