Stock Market - Why I'm Watching Last Week's Low
For the past 2 weeks the stock market has been consolidating and is carving out one of my favorite patterns which is a triangle formation. If you look at the above chart of the Dow Jones Industrials (DIA), you will see this pattern beginning to take shape. The fact that the trend was down just prior to the triangle tells me to look to take sell signals and NOT buy signals. If the Dow moves below last week's low (dashed line) I think we'll see another leg down in the stock market.
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5 comments:
Kevin,
Does today's market action satisfy a short entry for you? - Intraday the market definitievely got below last week's low, but it may not close there. - Thanks for heads up.
Joe
Yes
hi Kevin i want to mention something that Large Specs got VERY LONG past 2 weeks on S&P Futures maybe this is a bit alarming signal and all shorts should be managed with tight stops in my opinion.
Ugh! I have worked and worked the charts, and agree(d?)that it looks like it should go lower... but then today this upswing went high enough to messup the pattern...
I just down get it. Should it still go down as we had seen? What bizarre action!
People are buying ahead of the Fed's announcement tomorrow about interest rates. Trading is always choppy and unpredicatalbe ahead of such announcements. Very frustrating!
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