Continued compliance with the new channel adds confidence and strength to the res. and support lines. Two things tonight.
The double line across the opening Inv. H&S. The lower line delivers to target. In doing so a second higher line is formed, with a common left shoulder.This RHS was at 9164- what a surprise! Clearly this second line doesn't continue through the target of 9194.So we decline. In doing so we get a bull flag with a target of 9250- clear failure and down we go.
Second thing- a perfect positive divergence with an RS Switch. Look very carefully at the RS Switch and how to recognise it. The rising RSI support line HAS to start BEFORE the intersection. At some point, the downtrend resistance line will intersect the uptrend support. At his point, RSI SHOULD test this line for support at least once.This is the most powerfull bottom I know. Don't laugh.
Remember you need 3 things for the perfect setup, as described. All good things on the DOW come in three's. If you want that final, final confirmation, go long on the FIRST low after the switch where RSI DOESN'T drop to the support line. This is at 9140 ROCK BOTTOM. You won't always get the perfect low, but you will be close AND safe.
Oh, and my overnight long paid out. One of the rare occaisions I have had the courage of my convictions. I can't condone holding overnight so don't take the chance. If you must feel tempted, take a 1/10 th stake and treat it as a pure gamble after a good day- one for the road if you like.
Looking at ES, a breakout of 1000 leads to 1030/ 9500 on DOW.