Monday, June 14, 2010

June 14 Dow Intraday analysis and updates

The chart above shows we rose sharply and did rise above the slanted first "W" pattern, but now it shows we will head lower from the 2nd "W" pattern sloping downward. The Dow, S&P 500 and the Russell 2000 all broke up over the second level of Resistance levels. Now they have moved back below them and we will go lower.

As you can see above, it did go lower and now has turned up from the 3rd red line under the "W" pattern. It may be turning again shortly but we have settled into a range for the day.

Ok, above, is the last one I am putting up today (Update: adding one more below). It shows me that we are headed lower by the slanted down "W" pattern underlined and might not finish up today. Don't be fooled by those saying we are heading up. You decide.

Update: 11:50am PST
Well, for the record, I called this one correctly, as you can see in the chart above, we are now below the open at -5 on the Dow. The process of identifying "W" patterns should now be something that you can easily do. The challenge is to trade on them. It is difficult to do during the day when you don't have the software built in to help you execute trades. I don't have it either. But the same principle applies to Monthly charts and yearly or any longer timeframes. That is why it is so important to keep the big picture in your mind at all times.

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