Dow Jones (DJI) is approaching the top (Higher Highs trend-line) of the the 1.5 year Channel Up, while flashing a very unique medium-term sell signal. That is the 1W MACD Histogram, which is declining, a Bearish Divergence that during that period of time, has initiated 3 declines of more than -9% each.
Given the fact that the current Bullish Leg of the Channel Up has extended to almost 21.9%, which is almost as high as the October - December 2022 sequence, we are expecting a medium-term correction back to at least the middle of the Channel Up. Target is 37120 (Support 1) and if a 1W candle closes below the middle, we expect a bottom around the 1W MA50 (blue trend-line) at 36000 (Support 2).
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No offense to you, but I disagree: The PC Ratio and PC Premium Ratio are very bullish on all US indices. As you write, the signal is "very clearly bearish". What is very clear usually doesn't work. Nevertheless, good luck with your trade. We'll see who is right :)
rishirathoreprofits
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every one here is bearish. so I am betting on hitting 10 percent higher Target very soon.
JoeChampion
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Yes, indices should be under the pressure of a bullish dollar. but i would wait for FOMC for extra confirmation!
The PC Ratio and PC Premium Ratio are very bullish on all US indices. As you write, the signal is "very clearly bearish". What is very clear usually doesn't work.
Nevertheless, good luck with your trade. We'll see who is right :)