It will be interesting to see if DMI+ breaks down through 20. One thing to keep in mind is that we had a Euro bank holiday that might distort indicators a bit, so I'll be looking for confirmation of the breakdown next week. We also have rollover going on and Friday was a pre-weekend day...in short, there are a lot of reasons why waiting for confirmation of the breakdown early next weak is worth it.
This does NOT mean I automatically exit my long term longs from below 55. However, while I normally don't use stop losses other than breakeven settings at all, I am now looking at certain levels that would get me out my trades.
I'm specifically looking at 57.85 which would force me to close my longs above 50. If 56.0 breaks I'm out of all longs and will lock in profits.
Should be an interesting week to come. :)
EDIT: Ignore the "Entry" levels, those are just used as email alerts because I want to pay attention to price around those levels. They're not really meant as definite "entries".
That's why I said "alarm bells", doesn't mean I get up right away...I sometimes (read: often) hit the snooze button ;)
Technically, this would be a great cheap price to get in for more longs, but the daily DMI change just can't be ignored. Having said that, if there's a nice momentum push through 60, I'm also not going to ignore that. I'll just keep the bearish warning in the back of my mind and will set trades to BE quickly.
I think there's a good chance it'll make another run at 61 even if it should break down after that.