The DOW this week 22/07 26/07

ChartMan

Legendary member
5,580 46
Encouraging signs at last to suggest that the slide is stopping, or at least slowing. A double bottom here with the lower downtrend support line coming to the rescue. Divergence on RSI and CCI look encouraging too, but remember they can take a while to become effective. Phase is showing the most to point to a reversal, now well off the support channel bottom and good divergence.The regression line is now sitting mid channel too and is above the 100MA.....Given the volatility , I guess we can go anywhere....
PS check weekly long term dow chart elsewhere- 23% is 7676...
 

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ChartMan

Legendary member
5,580 46
Still resisting further down is about all that we can say. the 23% has stayed intact and a tripple bottom has formed.Phase, RSI and CCI are all still showing divergence so there's hope yet...... The triangle forming on RSI looks like it could be resolved tomorrow.
 

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ChartMan

Legendary member
5,580 46
I just love it when a plan comes together.The RSI triangle broke out, after what appeared to be a failure as the futures opened 160 down...From there it was a monster 658 point rise with minimum pullbacks.That is more than 8.5% from the low and 6.3% from yesterday's close. Unbelievable. Phase has been a good advance indicator, not always, but very often and over the last couple of days it has been brewing, along with the divergence in RSI and CCI. It would still be a brave person that put money on the reversal though. Still here we are, from a position of gloom and despondancy to one of (temporary) exhuberance. I know it's splitting hairs, but the downtrend resistance got broken just before the close and the price bounced off it to provide a switch to support. My feeling is that today is way way too much too quick, but then the market has been horrifically volatile recently , so maybe that will go out of the window and we will continue. Who knows?.... It's been one of those days ( sorry JP) where one can say if only..... but then I suppose we all say that from time to time.
Maybe tomorrow will produce some sort of confirmation of things to come, if only short term......Maybe the bears will shut up for a while and lick their wounds...
 

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ChartMan

Legendary member
5,580 46
A day of reflection I think, neither one thing or the other, closing down 5 points.Phase is confirming the bounce off support so we could be looking at some more upside. Friday's have long been a good day.....8400 is within reach although we need to break 8250 resistance first. This was the HOD today.There is also a new downtrend resistance line at 8240 now, so that will be the crunch.
 

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ChartMan

Legendary member
5,580 46
Good day consolidating, but failed to break 8250. Although we have the bull triangle formation, Phase is not confirming it so I'd have to go with phase and say we are not going to break out, yet. I guess we'll get a clue from the futures on Monday...
 

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