US30 Ready for More Excitement? Going back to the 4-Hour timeframe, there's the beloved Popgun pattern still in play.
Here again are the sequence of 3 swings by the Popgun that are consolidation moves like a See-Saw: Up-Down-Up.
After this Up move by the bulls is over, they will pivot to the downside for the bears to make their Down move. When the bear run is over, we'll see another pivot for a swing back Up so the bulls to can make their final move.
US30 Will It Keep Going Up? On the Hourly, we have a very tall Outside Day pattern that formed, which means high volatility and erratic moves ahead.
There's a Limit Line at the high of the Bullish Outside Day (as an orange dotted line) at 47,259. If the bulls intend to keep going up, then a new bullish candle in the new hour would need to breach that line to close above 47,259 and then another bullish candle forms to "clear" past the Limit Line to no longer touch it. If one or both bullish moves don't happen, then back down.
*Reminder: We have 3 swings from the Popgun pattern on the 4-Hour timeframe in this sequence: Up-Down-Up that moves like a See-Saw of wide consolidation.
US30 Why So Much Uncertainty on the Higher Timeframes? Take a look at the Daily. The last two candles currently look like a tall Inside Day pattern, which means no true direction.
Also, both candles have their bodies tethered to the Bearish Trendline (in red dotted line), which means there's still no true direction because their upper candle bodies are to the left of the trendline, while the other half of their bodies are to the right - hence, Neutral (directional) Market Bias.
There's still 7 hours until a candle close, so we'll see if we still get a tall Inside Day or something else.
US30 I've never seen such tight "coiling" of bullish and bearish candles ranging like this on the 4-Hour chart.
We have three situations unfolding; 1. 28-hours of tight ranging can lead to a HUGE breakout, either to the upside or downside. It's like a coil that keeps winding tighter and tighter until it has to spring out in a BIG way.
2. The last few candles are consolidating within a tall Inside Day pattern for a market pause with no clear direction. Breakout from this would either be at the pattern's high of 47,199 or low of 46,944. It has to be a true and not a fake breakout.
3. There's a Popgun pattern within the ranging of candles. That can result in wide consolidation involving 3 swings that move like a See-Saw.
Here's the sequence of the three swings: Up-Down-Up. The first swing is going Up, which can be seen with the bullish candle that's forming, right after the Popgun pattern appeared. And all the swings will play out during this session and into the After Hours.
US30 🏛️ Fundamental & Macroeconomic Drivers The fundamental picture is influenced by recent economic data and institutional expectations.
Economic Growth: A key positive signal is the US Manufacturing PMI, which came in at 52.2 for October, indicating expansion in the industrial sector. This supports corporate revenue expectations for related sectors.
Interest Rates & Inflation: The stronger PMI data can raise inflation expectations, which may influence the Federal Reserve's interest rate policy. The market is attentive to any signs that could push Treasury yields higher.
Institutional Forecast: One global macroeconomic model projects a price target of 46,069 for the US30 by the end of the current quarter.
US30 A Giant W is Forming! We have 2, Double Inside Days on the Hourly, which means that we may have more than one BIG move to happen during the New York session.
A giant W-shaped pattern is forming.We could see the final leg of the "W" that is oftentimes a long bullish trend.
Also, there is a "Ledge" that formed (outlined and labeled on the chart) that is one of several signs of a parabolic move coming.
US30 Ready for More Excitement?
