E-Mini DOW 30 Intraday Rally And Crash Review

We are still dealing with diagonal wave structures, and at this time it sure looks like another inverted zigzag has completed. Now we have another mean looking spike to the downside, which should take out the short term support  for wave 1.  I start with very small degree levels, and in this case wave 2 in Micro degree has already ended.

To confirm this particular move the DJIA should travel to newer lows, but unless some real wild little diagonal moves up, are still in effect, we can have a bullish reaction, breakout to new record highs.

At the 21,220 price level the DOW could produce a H&S type setup, which could be bullish in the short term, but would be a bearish setup at a bigger scale.

On a Cycle degree scale this market is going down, and once the emotional day traders find out they are not making any gains, then they will sell. The only reason they are in this market because it was going up. They love to buy high, as they shun anything that is pointing down. Insiders (smart money) are long gone out of this market, as a big group of insiders increased their pace of selling in May.

We are coming up with dual July holiday dates next week, so there will be reduced postings during that time.

Hits: 0

Share this...
Email this to someone
email
Print this page
Print