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Friday, September 23, 2011

Dow Jones Index Pull Back?

If the top of that rejection candle breaks its high we can see a nice retracement on the Dow. The Index has fallen straight down for two days without a single sizable pullback anywhere in sight. I just caught this setup by glancing at the one hour charts and it looked very appealing. The rejection bar is situated right on the yesterday's low and it looks a lot like stop hunt to me. We also have RSI DIV between the two swings indicating a lack of seller participation. We are also currently sitting on the low that was formed during the early August panic selling crash. The Dow Jones Index is still in a range bound market. Since we are at the bottom of the range it may be wise to fade the support for now until we get a clear break in either direction.

1 comment:

  1. Looks like the pull back turned into a full reversal. :)

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