On 1st May after forming bearish shooting star pattern Dow had made new lower high trend at 33652. Dow after giving false breakdown below 50 DMA on 16th May Dow was not able to break above 20 DMA (red line ). Instead it made new lower low yesterday( as per today's candle stick.) As per chart Dow is stuck b/w 20 and 50 DMA in small range. MaCD is in neutral zone .
When any index or stocks makes big move , it starts loosing its volatility and becomes neutral, starts trading in small range for days or weeks and again makes a big move there by increasing volatility. Dow is in same phase. Diff b/w high and low was 1200 point from 1st May till 16th May. From 16th may to 19th may Dow is trading in 600 point range. Yester day Vix was 16 and today it's 17. So slowly vix is increasing. So if Dow have to move above yesterday high for up move and above 33800 for down trend reversal and below 32900 for uptrend reversal.
When any index or stocks makes big move , it starts loosing its volatility and becomes neutral, starts trading in small range for days or weeks and again makes a big move there by increasing volatility. Dow is in same phase. Diff b/w high and low was 1200 point from 1st May till 16th May. From 16th may to 19th may Dow is trading in 600 point range. Yester day Vix was 16 and today it's 17. So slowly vix is increasing. So if Dow have to move above yesterday high for up move and above 33800 for down trend reversal and below 32900 for uptrend reversal.
