" Balloon Popped" Rare Pattern Analysis Part 2
This past weekend, I wrote about a "rare pattern"
in the Dow Jones Industrial Average that I had observed.
It formed last Friday after the much better than crowd expected jobs report,
that seemed to catch everyone by significant surprise.
Price gapped up sharply all day on June 5 ( See Chart)
after the report was released and I wrote in my last article
that to my eyes the upside burst had the look and feel of a termination move.
Dow rose sharply again Monday June 8,2020
retracing to the top of the pattern "gap
burning the last shorts, who thought they might have figured out the pattern.
The bull is is very difficult beast to kill when it's running mad.
But then, something surprising happened on Tuesday/ Wednesday,
especially after the "grim" Federal Reserve afternoon statement,on the American economy
the Dow began to fall sharply off.
I had suggested a big downside move was in the offing.
The Technical Pattern "set up "on the Dow is now once again suggesting to me
that a potential sharp, downside move off the " final upside island gap "
could begin at any time, with a sharp, sudden,and significant downside move.
I warned 48 hours ago , that the caution light was blinking,
I'm certain a majority of investors simply disregarded the warning,
and continued to buy hand over fist
In conclusion,let's see how this analysis plays out,
now that "the balloon appears to have been "popped"
DOW Industrials
26990
Last
THE_UNWIND
10/11/20
NEW YORK
in the Dow Jones Industrial Average that I had observed.
It formed last Friday after the much better than crowd expected jobs report,
that seemed to catch everyone by significant surprise.
Price gapped up sharply all day on June 5 ( See Chart)
after the report was released and I wrote in my last article
that to my eyes the upside burst had the look and feel of a termination move.
Dow rose sharply again Monday June 8,2020
retracing to the top of the pattern "gap
burning the last shorts, who thought they might have figured out the pattern.
The bull is is very difficult beast to kill when it's running mad.
But then, something surprising happened on Tuesday/ Wednesday,
especially after the "grim" Federal Reserve afternoon statement,on the American economy
the Dow began to fall sharply off.
I had suggested a big downside move was in the offing.
The Technical Pattern "set up "on the Dow is now once again suggesting to me
that a potential sharp, downside move off the " final upside island gap "
could begin at any time, with a sharp, sudden,and significant downside move.
I warned 48 hours ago , that the caution light was blinking,
I'm certain a majority of investors simply disregarded the warning,
and continued to buy hand over fist
In conclusion,let's see how this analysis plays out,
now that "the balloon appears to have been "popped"
DOW Industrials
26990
Last
THE_UNWIND
10/11/20
NEW YORK