Thursday, March 10, 2016

[DJIA] update

At the backlink I provided the model below.

This near term model has morphed slightly to that shown below.

However, the big picture is still bearish leaning per the larger model below.  The DJIA is right up against serious resistance at this point.  After having broken down support in what I count as 5 waves and then struggling to get back above it while only achieving a lower low in 3 waves (AKA deep vee 2nd), the chart again broke below the support, again motively in 5 waves and is now back testing from below in 3 waves again.

If this cannot break out AND SOON then the next move down is likely going to be a UVXY moment.  This is one of the best UVXY setups we have seen in a long while IMO and if this model is right it should be a 3rd of 3rd down. 

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