DOW

The best place to short for today is ..
16853 with a 40 point stop during market hours only..
This is half way up yesterdays candle.

This trend line bounced off last time but the fact that its come back tells me its likely to break and head towards the main trend line. So the bears maybe in control soon so keep an eye out


dl.dropboxusercontent.com/u/4899609/dow8thoct2014.png

Quite a big fall here today, the Dow is now trading near some important technical levels.
Firstly we have a couple of potential trades on.
The first is of the trendline @ 16766 (rising daily), with a tight stop, 20 points, and first attempt only imho.
If this fails it could be heading to the 200 day @ 15585.

This is a vitally important level, if this support goes, we could be heading a lot lower.
We got a nice bounce off the 200 day, in early Aug. This set a important technical level to watch imho.
At the moment we are still in bull mode here, however the Dow is near some important levels imho.
uk.advfn.com/p.php?pid=chartscreenshotsh...symbol=DJI%5EI%5CDJI

This is a close up.
uk.advfn.com/p.php?pid=chartscreenshotsh...symbol=DJI%5EI%5CDJI

Regards,
Trendfriend.

I'd probably be a bit more cautious and only entertain new longs above 17149, being the last swing high prior to the lower low from yesterday.Nice pin bar on the 4H from yesterday.

Cheers,
M.

Closed @ 17077.
uk.advfn.com/p.php?pid=chartscreenshotsh...symbol=DJI%5EI%5CDJI

This looks to be in a triangle formation atm.
Worth trading on the break either way, so for tommorow the important numbers are, 17080 on the upside breakout, and 16935 for the support channel, 16935 is also the where the 50 day ema is, and its bounced from this level a few times now. I will trade this only at those two levels.
Long @ 16935 or long @ 17080.
If it breaks below 16935, then wait for a retest, and short imo.
A RSI breakout may give a clue which it will go.

As always with the dow, stops are your best friend, and move b/e quickly imho.

Regards,
trendfriend.

Well done TF - worked nicely from the look of it! Hats off for your live posting prior to the event - never easy on the indices!