The chart pretty much explains it all. I've slid over the Fib Retracement so that you can see the numbers better (FIB drawn from 24DEC18 candle to current candle). I believe we will retrace to the 0.236 Fib level, which is 25162 or close to it. I also believe it will turn around at the R1 Pivot Point. This being said, my stance on the Dow will be neutral i.e. Range-Bound (down and up in a sideways channel). Surprised to see my stance is not "short"? Here is why: Right now, it can go either way. We are only in February, and we have a long way to go until the end of the year. We are only roughly 600 points from record, all time highs. In the short term, I believe we will stay range-bound, with emphasis going to the Short direction. The Fed's decision to slow/halt interest rate hikes have given us a boost. We have also gotten a boost on news of a China trade deal. Any change in these decisions can send the market wildly into a downward spiral (possibly a crash?). The VIX is currently at around 13, so the market volatility has calmed down drastically from its recent highs in the mid 20's. I also believe this will be a factor in the market staying range-bound due to low volatility. Let me know what you guys think, and what trades you are doing with the Dow! Hope this helps.
Happy Trading,
Zak
Happy Trading,
Zak
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SHORT, RSI has triggered the break down. It's down hill this week.