DOW

Retested the breakdown point around 30000, taken a small short, 200pt stop.

Rising wedge has broken down. RSI divergence for a while, could the top be in? Possible pull back to 25k area

I have so far used the 4 hour charts for direction. Yesterday the long term trend line I thought was broken. I am watching the price action closely but as indicated in the posts below I can see some negative divergences forming and lower highs and lower lows . Time to watch closely

Hi SE and all....

Yes this does have the negative RSI div hanging over it....unfortunately you cannot use one indicator in isolation....its got to combined with other bearish indicators or set ups....and i don't see them right now...

it did look like the market would come off again....with a lower ow in late Oct....but then the vaccine news plugged the rug from under the bears feet....

The markets currently have lots of headwinds....but in bull markets they just get brushed aside...

Can these markets tumble??.....yes
is there a big bubble and top building??......yes

Question is when?
this is just going to keep pumping imvho....someone i follow is suggesting 2023 for the next bear market/phase....

with only corrections along the way...

lets see...
atb, wdik,dyor,
trendfriend

Price action on Friday was interesting, doesn’t seem to break out past the 30200 mark just yet. Which may still support the wide horizontal trading range maybe. It seems to be range bound 29600-30200 with the ascending triangle.
I am still struggling to find a trend so sideways is the best I have at the moment .
Gold seems to be moving up again.
By the way I did a small short on Friday but got stopped out which told me to stop trading until the cloud clears up for now

Negative Divergence on the RSI? Many of the factories I work with in China are working flat out for sure - Although the supply chain has collapsed due to demand and they are literally running around with cash trying to secure components. Freight container prices are soaring due to the bottleneck on increased demand (£2k in October for 40ft container -currently £6.4k and forecast to be £10k in January!!!)- Dollar is weakening - All means inflation and higher prices on the way = strong headwinds? The parabolic rise in stocks is unlikely to end well IMHO