Watch That Line!
The DIA got extremely close to violating its descending resistance line (that is, the upper-right line of the diamond pattern). But the key thing is that this lined repelled the DIA and the market fell today (not much, but it fell nonetheless).
As long as the DIA can stay below this line, the chances of it breaking beneath its diamond pattern (and thus creating a true downdraft in the market) remain intact. I'd put a conservative stop price of 109.50 here.
2 comments:
The resistance still holds!!! Boo-yah!Is it me or does any else find this market a bit 'kooky' right now? I mean it seems every time we get a 1/4 point fed raise, the market squirts up a 100 points! I am sure I'm not the only one that wishes that this market would make up it's flippin' mind and get on with it! So far this tug of war seems to be going to the bulls, but the more one thinks of it the proverbial 'wall of worry' is not even a wall any more, but a mountain! Good luck climbing that one Mr. Bull! This week is the start of the bulls losing grip.
Well, it looks like today it was violated. Does this change the bearish outlook?
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