Markets – Macro – Technicals

Weekly $DJIA

Markets have been in corrective mode for the past few weeks. Today is of course all about the Fed and a massive rally could be induced at any time. Yet ignoring that reality for a moment the weekly chart of the $DJIA  suggests the potential of two additional weeks of downside action. Why? Because this pullback started with 2 weekly Dojis similar to the ones we have observed back in early 2013 and early 2014.

In both of these cases we saw precisely 6 weeks of corrective action before at least a temporary bottom was in place:

$DJIA W

This doesn’t mean we can’t have a positive week here, but it does suggests the lows are not in yet on this particular move if the structure replays.

For now we have to wait what the almighty Fed communicated today.

Advertisements

Tagged as: , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

The material on this website is provided for informational purposes only, as of the date hereof, and is subject to change without notice and does not constitute investment advice.
Home | About | Disclaimer | Contact
Copyright © 2013-2017 NorthmanTrader
The materials on this website may not be suitable for all investors and are not intended to be an offer, or the solicitation of any offer, to buy or sell any securities.