Yesterday the DOW E-Mini hit a bottom and then started to rally again. This is a 45-minute chart but I also review the daily chart at the same time.
The possibility of a bigger counter rally is real if we just finished another expanded flat in Minor degree.
We also had an intraday double bottom at the 25,222 price level and we should know shortly if this is going to hold. At the 26,000 price level, we would start to run into resistance, but if the DOW screams past the previous 4th wave top, then there would be a good chance of the DOW to head back up to the 27,000 price level.
That would be a violent bullish move, as all the “Protective Buy Stop” orders are above our present prices. This trade war is now the largest in US history, and it remains to be seen how effective it will become.
The April peak was well short of a new record high, and it had a funny pattern I didn’t like as well. Those two things can always spark a surprise bullish move.