With 'Independence Day' in the U.S and the market doing the opposite to what i suggested i decided to take a little time out and re-assess my strategy.
i was not damaged to bad as that what 'stop-losses' are for. This is what happened
As you can see, the DJIA hit the 50% retracement and that was it.....it faulted and has now broken the upward channel and it seems to be sinking into oblivian....it has fallen below the support line from mid-may (8220) and is struggling to get back above (could be a bear trap???)
I've now gone back and drawn Fib lines in from March to June (Lows to the Highs). I will be using this as my guiding support and resitence lines to trade off. This is the DJIA
XJO time; this graph shows grouping around the L-T down-ward trend line around September 08. Fast forward to now and grouping is starting to fade, i am looking for a 'final' retouch then rejection
This has been a long post.
In conclusion i am looking for the DJIA to hit the 61.8% retrace and bounce back to the L-T downward trend line to clear out a few more shorts before heading 'south'. The XJO has already hit the 61.8% mark and bounced.
i will post more on the anticipated bounce in coming days
safe trading
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