Sunday, September 13, 2015

Market Watch: DJIA


Well that looks very interesting. Take a look at the huge and I mean to say HUGE triangle consolidation forming since mid August. It goes between roughly 1875 and 2025. Consolidations are holding patterns after which either the original -downward- continues or there is a turn around.

So, which way will it break? Notice how the 50 dma -yellow line- has just ducked under the 200dma -blue line- that's an early warning indicator. Also notice how the 200dma is flattening out and turning down, that spells bad news for the long term. If I had to guess I'd say its going down, but guessing is risky, just wait for the break. If it breaks down you can play the short side with DXD.

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