It’s not the first time that I was bearish about Dow Jones. In fact in #tflow BP class the day before FOMC that a rally is seems like a sell for bears at high. Indeed, I was right because Dow Jones ended up with a long shooting star.
See my few postings highlighting that Dow Jones is still bearish.
Update on Dow after FOMC meeting
FOMC meeting on 17/18 Sep, after which we see a plunge in indexes. See my posts on S&P500 moments before FOMC stating that I was still bearish even retracement was fierce.
On weekly chart, price action shows bearish shooting star.
#TFlow 1234 pattern seen, Key levels to note
There are 2 levels to note, S1 and S2 before price might see an explosion downwards towards S3. S1 and S2 are all weekly close levels.
As always, truly, if you want a trade that’s explosive (a secret revealed), then you need to take note of multiple time frame. Thus we need a day close below these marked levels.
If price rebounce from S1, then I hope to see a retest back into 16500-600 for a better price to look for some selling opportunities.
Above chart price feed from Axitrader. If you are interested in Axitrader (the broker I’m using), axitrader here
Update on 23 Sep 2015, 4.28pm
Indeed price gets supported by S1, then subsequently broke it. Now price is supported by S2. (BINGO!)
I also said that if price was supported by S1, I like to sell again when it retraces up towards 16500-600. Price retraces, but not as deep as I wanted.
Now, the old S1 has became a resistance which should cap price for now. At this level, it could also bring about a new wave of selling. It is thus now important for price to close below S2 for S3 to surface as a support.