The chart pretty much explains it all. I've slid over the Fib Retracement so that you can see the numbers better (FIB drawn from 24DEC18 candle to current candle). I believe we will retrace to the 0.236 Fib level, which is 25162 or close to it. I also believe it will turn around at the R1 Pivot Point. This being said, my stance on the Dow will be neutral i.e. Range-Bound (down and up in a sideways channel). Surprised to see my stance is not "short"? Here is why: Right now, it can go either way. We are only in February, and we have a long way to go until the end of the year. We are only roughly 600 points from record, all time highs. In the short term, I believe we will stay range-bound, with emphasis going to the Short direction. The Fed's decision to slow/halt interest rate hikes have given us a boost. We have also gotten a boost on news of a China trade deal. Any change in these decisions can send the market wildly into a downward spiral (possibly a crash?). The VIX is currently at around 13, so the market volatility has calmed down drastically from its recent highs in the mid 20's. I also believe this will be a factor in the market staying range-bound due to low volatility. Let me know what you guys think, and what trades you are doing with the Dow! Hope this helps.
Happy Trading,
Zak
Happy Trading,
Zak
Trade active:
SHORT, RSI has triggered the break down. It's down hill this week.