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:
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.