Earlier this morning I posted my opinion of what I was viewing via the “markets.” I no sooner posted when I received a call from a friend asking me, “So, what about the Dow?” i.e., Dow Jones Industrial Average™.
It was a fair question and as I was replying I could see how others might feel (or believe) I’m intentionally trying to side step what seems by many as a “freight train” only to roll ever higher. So, it’s in that vein why I add the following.
What it means, as always, is in the “eyes of the beholder.” So without further ado, here it is:
What the above chart shows is the Dow via a daily chart. The colored areas represent what are known as “Fibonacci” equations via a channel pattern. What I’ve done is mark what is commonly known technically as a “throw-over.” It begins indicating bearish interpretations if it falls back, retracing its accent in much the same manner, time frame, as it was created.
It doesn’t matter if you understand what are known as “Fibo’s” or not. What’s important – is if the machines do. (aka Algo’s) And how they may react to such pattern recognitions.
What you need to take notice of is where the market currently is as of this writing which is approx. 12:30 PM ET.
From the “markets” open it zoomed higher, relentlessly, precisely to a very relevant fib number carefully watched across most technical analysis. e.g., 1.618.
Should the Dow, in unison, stop here and reverse, along with the other indexes sporting similar reversal patterns? Then, as I’ve stated in all the previous commentary – a close within the above highlighted box over the next few days or so would raise the flag for “hurricane warnings” I have cautioned for.
Either that, or Dow 100K, right?
© 2017 Mark St.Cyr