Yesterday, DJIA dropped into a potential reversal zone. This sets up a long opportunity and allows us to maintain a bullish bias.
The 5 wave move from Feb 11 to April 20 allows us to maintain the bullish bias as only 50% of the uptrend has been retraced...that is after what is supposed to be a bearish outcome to the Brexit vote!
This suggests that the ultimate negotiations between UK and EU may not result in anything harshly different OR the market isn't worried about it as these negotiations may take a couple years.
If the bullish outcome persists, upside potential is towards 19,700 and possibly 21,000.
A break below 15,503 offers an opportunity to stop and reverse to the short side. I will occasionally stop and reverse, but only in strategic locations on the chart. This 15,503 level is VERY important so a break down says the overall mood is changing.
Regardless of what you are trading or how you are trading, please follow those traits of successful traders. One of which is low amounts of leverage, especially in a volatile environment. Read more about the Traits of Successful Traders research here.