The DOW this week 28/05 - 01/06

ChartMan

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The DOW this week 28/05 - 31/05

Now the rounded top that formed a week or so ago looks to be better proportioned.There are the classic 3 slope changes that confirm at or near a bottom. The Fib. retracements for a bottom here look good, if we bounce off here at 23% up from the low of 9834.Prior bouncing off 50% and the pullback on 38% all fit nicely and the downtrend line touches the 23% spot on , so maybe a strong support level there.....If 9958 doesnt hold, it's fresh air to 9830's. A substantial dip in CCI often signifies the start of a new "cycle"
 

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ChartMan

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Closed at 9924, a few points down from the low of 10/05. 9958 support lasted well into the day, but finally gave way.... The major Head and Shoulders top gives a target of 9750 or so and it's well on its way. Even though the last two days have seen positive divergence on RSI and CCI, ( which failed tonight) I just can't see a turnaround from here.....
100MA : 10K Support :9930, 9830.....Resistance:9972;10K
 

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ChartMan

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I think this looks like a bottom for a while. The H&S target of 9750 looked on for a while, but as the day went on, it became less likely....for now. The pos. divergence mentioned yestreday came good and is still (broadly) in force, reinforcing more up.The crunch to more up will be the crossing, or not , of 9940.There's a double Inv. H&S forming, that has a target of 9940.That fits in with a 23% bounce off the low from 10,350 at 9443 ish. Everything points to 9940.....
100 MA: 9936. Support: 9808;9884;9853;9820. Resistance: 9932;9940;9964;10k;10,032.
 

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ChartMan

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And so we went on up, testing 10K on the way.Re positioning the fib. top to 211, we closed just above 23%. Closing below 40 is not good.....On the face of it, one has to say it looks like more down, but from a TA point, there is 3 days of PD now on CCI and RSI. Phase is moving in a contra trend, indicating up. Up will need a clear bounce from here. Not looking like there's much chance when you look at the 1 min chart...
Remember the H&S top still has a target of 9750.....
100 MA: 9964. Support: 9900, 9850,9800,9750. Resistance:9980,10K, 10,032.
 

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