August 13


Market Commentary for Aug 13, 2020


August 13, 2020

Yes, We are Consolidating.  Now what?


“We should Consolidate here…”  Looking at the 39 Minute chart, we see a bounce off Support, followed by a turn back down in the last bar of the session.  Consolidating at highs is precisely what should happen in a Bullish market.   But we are also watching for a break of that upper line,  which would be even more bullish and a great buying opportunity – short term. *


DJIA – 39 Minutes 

“Today’s move down could be the start of a Consolidation – sideways movement above 27,600.  If that happens, it will be a bullish indication.”  This is what happened today.  Marked on the 39 Minute Chart are the 2 possibilities for tomorrow – Continued Consolidation or Break.  If we drop through 27,600 however, that would be quite negative.


DJIA – Daily


“Since the rout didn’t cover much ground, I expect a bounce off Support, and then, perhaps a Consolidation.  But I would be looking to buy UNLESS we push down through 27,600 of course.”  I am including yesterday’s commentary because I really have the same to say today – we should see a move back to 27,600.  If we break it, that’s bearish.  If we move up through the last 2 session highs immediately, that’s bullish.  It’s really about as simple as that from my experience.


* I said “short term” above because there are so many factors around this market (price of gold, overseas markets and government action, the continued pandemic, Fed stimulus – the list goes .   Nobody can predict what will happen in the months ahead.  But short term, we can definitely play off these levels day to day.  


Ed Downs 



{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}