Dow 30 Industrial Average completed 2017 with a 1 week Closing Reversal,
trading higher on a closing daily basis at 24837.51 on 12/28 and then closing lower, below last weeks close of 24754.06 at 24719.22
The significance of this weekly reversal shall be seen early in 2018,
but for an index that has been moving up almost parabolic, it is a very bearish pattern to initiate at historic highs.
The continued RSI divergence as shown in your chart points out the continuing underlying risk. Thank you Geoff.
THE UNWIND
trading higher on a closing daily basis at 24837.51 on 12/28 and then closing lower, below last weeks close of 24754.06 at 24719.22
The significance of this weekly reversal shall be seen early in 2018,
but for an index that has been moving up almost parabolic, it is a very bearish pattern to initiate at historic highs.
The continued RSI divergence as shown in your chart points out the continuing underlying risk. Thank you Geoff.
THE UNWIND
Balas
Hi Geoff,
A Possible "Triple Top: is certainly now "possible" in the Dow on the 4 Hour Chart at 24838 !
Daily RSI on the Dow is trending down below the peak of 85 on 10/20/17, as price rallies, a glaring divergence.
Having said that the Christmas holiday is traditionally seasonally a bullish time for stocks, so one has to be very careful here.
I would initiate short on the Dow on the OPEN on 12/22 .....on any open below 24760.
Add to it on any break below 24660,.... and add a third, and most important position... on any break below Dow 24500
THE_UNWIND
A Possible "Triple Top: is certainly now "possible" in the Dow on the 4 Hour Chart at 24838 !
Daily RSI on the Dow is trending down below the peak of 85 on 10/20/17, as price rallies, a glaring divergence.
Having said that the Christmas holiday is traditionally seasonally a bullish time for stocks, so one has to be very careful here.
I would initiate short on the Dow on the OPEN on 12/22 .....on any open below 24760.
Add to it on any break below 24660,.... and add a third, and most important position... on any break below Dow 24500
THE_UNWIND
Balas
@The_Unwind, I will hang up my trading boots now until the new year when I think things will become more volatile, I wish you and your family all
the best for Xmas & New Year. Geoff
the best for Xmas & New Year. Geoff
Balas
A large fall late on Friday 28th Dec may mark the start of a larger downward trend, first target the open gap at 24445. Note the large momentum divergence.