Following on from yesterday's post on the Dow Jones, we can see the impact of a trendline break at the close of play.I've zoomed in here so we can see a close up of those (brown) Fibs showing the possible retracement levels of what I've labelled as a wave 3 up from the 31st Dec low at 12884. Yesterday's low came close to hitting the 23.6% Fib which is the level I'd expect for a wave A of a correction ultimately to the 38.2% Fib which would be about right for a wave 4.In the comments from the previous entry, Gary has highlighted the 161.8% extension of the initial drop (these are the blue Fibs) at 14934 as a possible low for this element of the correction and that coincides very nicely with the 23.6% Fib at 14921. There's also support from a previous breakout level at 14887 nearby so...

My orders to go long got triggered out of hours yesterday but had wide-ish stops so they didn't get taken.I've already closed half and moved my stop to just below the 6410 low on the cash chart. Can't be too careful with the indices! Original link...

Here's GKP's dily chart from yesterday's close. It clearly shows a bearish engulfing candle which could form part of the three outside down patter mentioned by Gary in the last comments.Note how this occurred at a confluence of resistances: the old downtrend from 228p, the bearish wedge resistances and the 38.2% Fib of the 228-126p move.In addition, the RSI also found resistance at double bearish momentum discrepancy reversal points (this is where RSI makes higher highs but price makes lower highs during downtrends - these are usually continuation patterns).Remember, all these bearish patterns have occurred just at the area we've been discussing. They can't be relied upon 100% bit it will take a close above 166p for higher prices now and a close below 160p today will confirm the downside move. The question is: would that be a retracement of an impulse move or would it be wave 5 of...

I missed the chance to go short on this at the descending triangle resistance shown here on this 4 hour chart. There should be another chance on a break of 1388.9p so I may look to go short on a backtest of that if it happens.Gold can be very volatile so stops are a must. Be very careful if you're thinking of trading this commodity. Original link...

I took this chart screenshot during the day yesterday as it hit that upper RSI support and price support at 872 both at the same time and bounced perfectly forming a hammer by close of day.It always worth looking out for RSI supports and price supports coinciding like this. Original link...