Hi Guys,
Like most my view is that the US indices are going to correct a few percent at least very soon. They cant keep going up the way they have been without a proper correction.
Looking at the Dow Jones, there seems to be good confluence at the current price. A shark harmonic pattern has completed ( The entry point limit of 1.13 is slightly exceeded but I generally give these patterns a 0.05 either way buffer and adjust my stop accordingly as there are many times where the pattern completes but just outside the entry limit yet goes on to complete the final leg).
Also the index is currently at the 1.13 extension from bear market high to the bottom, which historically is a place sellers are waiting after a rally out from a bear market or a deep base.
There is an upper line that it has reacted to a few times recently as well.
The daily could be printing a double top if tonights session finishes a red candle.
And there are 5 wicks that a line can be drawn across the top which also historically produes dramatic falls at market tops / swing highs.
On the same token, I also detect a bullish flag forming on the daily/4hr should the dow break out of the current high.
Like most my view is that the US indices are going to correct a few percent at least very soon. They cant keep going up the way they have been without a proper correction.
Looking at the Dow Jones, there seems to be good confluence at the current price. A shark harmonic pattern has completed ( The entry point limit of 1.13 is slightly exceeded but I generally give these patterns a 0.05 either way buffer and adjust my stop accordingly as there are many times where the pattern completes but just outside the entry limit yet goes on to complete the final leg).
Also the index is currently at the 1.13 extension from bear market high to the bottom, which historically is a place sellers are waiting after a rally out from a bear market or a deep base.
There is an upper line that it has reacted to a few times recently as well.
The daily could be printing a double top if tonights session finishes a red candle.
And there are 5 wicks that a line can be drawn across the top which also historically produes dramatic falls at market tops / swing highs.
On the same token, I also detect a bullish flag forming on the daily/4hr should the dow break out of the current high.