Sunday, January 31, 2016

[DJIA] reminder of the big picture. [UVXY]

I've been showing the DJIA big picture model for a couple of years now.  What we have here is most likely an expanding wedge made up internally of "threes".  The DJIA has dipped hard twice and each time the buy the dippers have come in and bid it back up.  Now as you can see from the top green downward pointing arrow, the chart is testing the top up sloping rail of the expanding wedge from below.  It did this same thing last time as you can see, and then bounced down and broke out but then could not put in a higher high before breaking back down into the channel.  This chart should scare the living crap out of anyone who is long the stock market and who knows how to read a stock chart because if it cannot break out again very soon then the most likely next move is to get rejected downward in a 3rd of 3 that rapidly breaks the lower rail of the possible HT at the green arrow.  Once that happens it will likely accelerate downward much more quickly as shown by the model.