littleriver

DOW LOSING MOMENTUM

INDEX:DOWI   DOW Industrials
121 16 1
Looking at pivots a and b it is clear price is losing energy . Not only has price not traveled as high in a relatively same time span but it has also lost upward momentum. We can see price was rejected on it's first attempt to cross the previous highs (yellow line) . This crossing also happened to coincide with pitchfork Pa's lower middle median line . It took a considerable amount of time and energy to make this new high. The lower middle median line of pitchfork Pa has acted as support up to now but it appears not anymore. Price is once again approaching this median line and if fridays candle is indication of the future, we may see the market turn to a flat. I have added pitchfork Pb             to accommodate this possibility. Should price be rejected next week at the high median line of pitchfork Pb             , then look for it to return to the center median line of Pb             .
Here is chart showing in a 21 day period the difference in upward momentum . The Gann fan at point Pa is the same as the one at point Pb. They are clones. While Pa fan is still clinging to the 1/1 in the 21 day period, the one at point Pb is well on its way to the 2/1 .
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Hi River - looks very bullish to me. The price just bonced from the lower parallel and is moving higher. Why do you say that momentum is lost? the only negative aspect for the bull scenarion is friday reversal, but structure is bullish to me
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Hi Leones Let me say first, this is all new to me. Price has three choices at the lower middle median line, rejection, go thru , or consolidate. This chart explores the rejection case. I am exploring this possibility because when I look at clone fans at points Pa and Pb I am seeing a decline. When I look at the consolidation period before the bounce off the lower medium, price has already advanced an equal distance from resistance( yellow line) as it had declined below it during the consolidation before the the breakout ( Action / Reaction). Finally, there is the Lower middle median line. It was once support. Now it is acting as resistance until price can reclaim this ground. Fridays candle may be a hint to where the bears are hiding in this market. If this is the place, next weeks action will confirm or reject this idea.
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Here is a better picture of what I am seeing. The yellow arrows indicate where we are on the clone fans. Price is slowing. If we fail here, the circle is where I see this going.
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2use LEONES
note it was quadruple witching on friday
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Nice point. I had not taken this into consideration.
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what do you mean by quadruple witching?
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2use LEONES
Check tripple witching - expiration day for 4 instruments. Volatility and volume raised and the day is usually not normal. Adds to the technical but has a different reason for being in red.
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Here is another chart with a new pitchfork. This new fork best explains what is going on now. I have cloned the upper quadrant and placed this new clone above the the median line high. This new line is what may be called a warning line. New pivots may be located near these lines. I am looking for a new pivot high and this may be the place. Here is the chart and a link to information I am using. Read rule 7.
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http://www.medianline.com/journal/category/action-reaction-course?currentPage=4

http://www.medianline.com/journal/category/action-reaction-course
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