If you recall my last post on the Dow Industrials,
I warned that the Dow had not made a new all time high last week,
while the S+P and Nasdaq had done so, a bearish divergence I found telling at the time.
July 31 sell off after the Fed meeting, a sharp pattern breakdown in the Dow,
to my eyes is quite bearish technically as it occurred when it should not have happened on the chart.
Chart pattern previously was an upside breakout to all time highs.
Yesterday's massive out of the blue selloff after the Fed meeting,
caused the bottom to fall out of the pattern, at a very unexpected moment.
Put another way.
The technical damage to the Dow, and the market seems significant in interpretation.
Sharp Rallies back up the chart should be watched very carefully for failures.
Downside risk appears now to be significantly elevated by this blindsided "event"
Cause : A bullish breakout pattern in the Dow, that went the other way,
.......and with it,met a very unexpected downside fate.
And add , the surprise factor that is now looming large over the market, and of course the Dow.
They just didn't see this one coming.
DJI Last 26864.27
THE_UNWIND
8/1/19
NEW YORK
I warned that the Dow had not made a new all time high last week,
while the S+P and Nasdaq had done so, a bearish divergence I found telling at the time.
July 31 sell off after the Fed meeting, a sharp pattern breakdown in the Dow,
to my eyes is quite bearish technically as it occurred when it should not have happened on the chart.
Chart pattern previously was an upside breakout to all time highs.
Yesterday's massive out of the blue selloff after the Fed meeting,
caused the bottom to fall out of the pattern, at a very unexpected moment.
Put another way.
The technical damage to the Dow, and the market seems significant in interpretation.
Sharp Rallies back up the chart should be watched very carefully for failures.
Downside risk appears now to be significantly elevated by this blindsided "event"
Cause : A bullish breakout pattern in the Dow, that went the other way,
.......and with it,met a very unexpected downside fate.
And add , the surprise factor that is now looming large over the market, and of course the Dow.
They just didn't see this one coming.
DJI Last 26864.27
THE_UNWIND
8/1/19
NEW YORK