The very sharp 1700 point rally in Dow Futures this week, accompanied by an almost straight up move since Tuesday has today completed almost precisel the right shoulder of a Head and Shoulder's Pattern on the Dow Futures Weekly Continuous Chart.
Today's high of 26085, basis June 2019 Dow Futures, met that target almost exactly, on the weekly chart I keep and should not be exceeded if this analysis is correct .
This potentially dangerous long term pattern in place in Dow Futures should give definite pause to bulls looking to chase this rally, or pile into the market at these price levels.
The possibility of a sharp downside surprise reversal now looms large out there with risk only increasing in immediacy, now that this acute reversal pattern is in place.
Caution is strongly advised. Dow Futures Last 26030
Perversely perhaps,
the market thinks that it can grow itself out of the hole,
or recession, with lower rates.
I get your point,however the market is looking at the other side of the coin.
Lower rates +new found growth
David_Scott
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This price action is insanely bullish at a time when the market overall is still very bearish. News cycle is still bearish. VIX Still elevated. Conclusion = new ATH is coming as the news cycle gets bullish heading into G20 end of June.
Perhaps David. Good points.
Anything is possible in the market.
Keep in mind though that from here out,
those who come in now may not
be able to get back out,.. so easily at their price.
David_Scott
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@The_Unwind, Trade Deal with Mexico signed. Bloff Off top scenario is looking likely. We could be hitting something nutty like 3100+ with a rate cut(s) and a China deal. Mega bullish set up while the overall sentiment was bearish even as late as this afternoon.
Copy that.
Often big money traders take advantage of perceived financial nirvana,
by doing something called " buying the rumor, selling the news"
Dow Futures Weekly Chart for 6/10 will not Close until 6/14
Watch and see if the close this coming week,is above 26085.
this past weeks high.
If it is, it would most likely indicate a bullish weekly continuation move.
and if it does not do that, then the very bearish weekly H+S Pattern Setup
will still be technically valid, at least for another week after that into the Fed meeting.