The hourly chart for the Dow looks to have cycled back down into a low ... the short term indicators below the price have turned up. The green line which measures price is oversold ... but these things can bounce some of the bottom while price makes lower lows. If you are short just make sure that you have your stops in place to ensure your profits are maintained.
Here is the daily chart. The green line (measures price) is close to a cycle low at the bottom however the blue line which measures money flow is about to peak. I would not be long at this point ... just look at last summer/fall the same setup occurred with price and the bottom fell out in October. Today we had basically zero inflow of cash into the market and we had a 58% volume down day. I believe any upward movement in price on light volume is still a signal to short this market but keep your stops tight.
The hourly chart for the Dow looks to have cycled back down into a low ... the short term indicators below the price have turned up. The green line which measures price is oversold ... but these things can bounce some of the bottom while price makes lower lows. If you are short just make sure that you have your stops in place to ensure your profits are maintained.
Here is the daily chart. The green line (measures price) is close to a cycle low at the bottom however the blue line which measures money flow is about to peak. I would not be long at this point ... just look at last summer/fall the same setup occurred with price and the bottom fell out in October. Today we had basically zero inflow of cash into the market and we had a 58% volume down day. I believe any upward movement in price on light volume is still a signal to short this market but keep your stops tight.
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