In this video I've shown how extended the Dow Industrials as well as Dow Transports are. This type of overbought setup has consistently marked tops in the past so I am currently bearish and waiting for a correction to play out over the next 4 weeks.
I am expecting an approx. 10% drop in the markets before going long
Nice call! Are you looking to go long from this point? We have reached some MAJOR technical levels on all types of charts like the major indices, DXY, and rates. If support begins to form in this area it could be the beginning of at least some reversion back to previous levels in my opinion.
markethunter888
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@ChazzyFreshh, yes it seems like a low should form this week and a bounce follows. Keep in mind that this bounce is just going to be a bear market rally as the trend is bearish. Cheers !
ChazzyFreshh
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@markethunter888, Short term bearish yes, but if a low is formed here that would be yet another higher low on major indexes supporting the possibility of a bullish continuation. Will be fun to watch play out!
markethunter888
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@ChazzyFreshh, yes, that is a possibility but I would find it hard to bet on that