DOW

OK this is what I am seeing on DOW

clip2net.com/s/2BnpW

Plenty of support around the 13000 with fibs, resistance and support turn to resistance.
If looked at on the hourly even more support

RMc

yesterday i shorted the dow at this point,13290. Made a nice profit.
Today i wont be doing that as that level is getting weaker as its been tested a day latter.
When a level gets tested a few times then it normally weakens that level. Hence why i only ever attempt it on first touch basis.
dyor

Hi diver,

Yes, your count is certainly possible, as is the idea that the move down from 13663 to 12471 was a full ABC correction on its own and that we're now in a new uptrend (wave 3 of 1 of...?).

I note that since my bearish FTSE post this morning, its long term RSI seems now to be trying to breakout...

I don't have any index positions open at the minute - just waiting for a clear signal either way but I'm coming round to the bullish view!

Hi Jackozy,

I don't think this was a five way move as there was no divergence on the RSI to denote the fifth wave.

screencast.com/t/e6FSk9Eehwa

This may seem a little extreme but I reckon the DOW is headed for a test of support at 12020

It bounced exactly off the old uptrend support line at 13307. It's possible that the move down from 13662 was a 5 wave move and, if it does drop below 13011 from here then the move up from 12471 will look a lot like 3 waves.

In addition, 12471 was the 38.2% Fib of the move from 10404 to 13662 so a 5 wave move down to there followed by a 3 wave move up ought to be followed by a further 5 wave move down, possibly down to the 61.8% Fib of the 10404 to 13662 move at 11663. US fiscal cliff could make this speculation a reality perhaps?

Time will tell...

should be a free trade now.
Also if it heads towards 13290 again then dont try and short it again.
This only works on first attempt mainly.
dyor