We expected a rally and we sure got one. We can make a case that we are heading back down right now or right after small gain on Tuesday as shown on the chart.
Short term there's some sentiment indicators showing sign of overbought requiring a pause to work the excess off. Then we reached the 61.8% retracement and a resistance line only to see the market backing down. The nature of the coming decline should tell us more but we are sticking to our outlook for the Dow to eventually move below 23400 with wave (c) = wave (a) at the 22200 level. Just keep in mind that is an idealized scenario. A less bearish outcome would be moving sideways within a contracting triangle.
Regardless of the prevailing scenarios, we still expect the market to start to trek higher later this spring. Bull markets don't end this way.
Hi @yauger , so far the DJI is still good enough to short? It's quite strong today Thanks...
yauger
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@JackyQZ, Hi. I wouldn't trade based on my publishing. I am doing it only to show that markets are patterned AND predict the future is a different story. The only thing I would say for now is it would make more sense if the market would hit another soft patch but based on the choppy action from last Friday to yesterday low, we are not there yet. Today,s strong move jsut confirms it. Thanks for reading
JackyQZ
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@yauger, Thanks a lot... please keep updating your post, it's a great work...