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. *
“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.