Let me start by saying that the fundamental analyst that I follow closely sees further upside on the global markets, including US. This of course takes away my confidence in the bearish bias I have, but I can't completely ignore the obvious technical signals.
Divergences on the Dow work almost perfectly, both on weekly and daily. I have published divergence studies in the past, so if you are interested, check them out, because this chart is only about these last few weeks. At the beginning of march, you can see a class b bearish divergence, and I believe we tested that level, with another bearish divergence. The difference now is that we had a false breakout over the historic high, and there is a histogram divergence! This is rarely seen on the DOW!
There might be some more lateral movement, as the hourly chart is very oversold, but as long as there isn't a close over 16575, I'm holding my bearish bias. Support lines are plotted on the chart, and we must watch for bounces.
I don't want to be taking profits at any of these targets, I wan't to add to my position any time I get a chance, cause if I'm right, this is the top for now. I don't know if it is the end of the bull market, I forgot my chrystal ball, but it certainly has all the characteristics of a top.
Divergences on the Dow work almost perfectly, both on weekly and daily. I have published divergence studies in the past, so if you are interested, check them out, because this chart is only about these last few weeks. At the beginning of march, you can see a class b bearish divergence, and I believe we tested that level, with another bearish divergence. The difference now is that we had a false breakout over the historic high, and there is a histogram divergence! This is rarely seen on the DOW!
There might be some more lateral movement, as the hourly chart is very oversold, but as long as there isn't a close over 16575, I'm holding my bearish bias. Support lines are plotted on the chart, and we must watch for bounces.
I don't want to be taking profits at any of these targets, I wan't to add to my position any time I get a chance, cause if I'm right, this is the top for now. I don't know if it is the end of the bull market, I forgot my chrystal ball, but it certainly has all the characteristics of a top.
