Dow in Throwover: Short Entry
The slip-slide has begun. Could surprise us with a last-ditch retest from here, but futures are grim and price action = bearish.
After an exhaustion gap - up we had a shooting star doji on the 2-hours 8/7 and an engulfing bear candle 8/8 end of day.
High probability given these signals the Dow is in throwover. A sharp decline might ensue following rejection from 25688 on 8/7.
See links to my other posts re: possible depth of a pullback. Bear in mind real possibility of this being a left shoulder & head formation, with right shoulder still to come.
Enter shorts with caution and keep stops tight in event of a final rally attempt back to the 25630 area. Retest of lower channel line seems unlikely but possible.
Target zone R1: 25240 -25360; R2: 24940 - 25060. R3 24660 - 24780. Expect a powerful bullish pivot leading to a breakout wave up from channel.
After an exhaustion gap - up we had a shooting star doji on the 2-hours 8/7 and an engulfing bear candle 8/8 end of day.
High probability given these signals the Dow is in throwover. A sharp decline might ensue following rejection from 25688 on 8/7.
See links to my other posts re: possible depth of a pullback. Bear in mind real possibility of this being a left shoulder & head formation, with right shoulder still to come.
Enter shorts with caution and keep stops tight in event of a final rally attempt back to the 25630 area. Retest of lower channel line seems unlikely but possible.
Target zone R1: 25240 -25360; R2: 24940 - 25060. R3 24660 - 24780. Expect a powerful bullish pivot leading to a breakout wave up from channel.
