The Dow continues its tremendous rally from
recent lows. I have stated before that it is my opinion that this is a
bear market rally. Has anything happened to change that opinion? Nope,
but I’ve sure got a good case of the heebie-jeebies! Let’s revise the
charts to see why.
DAILY CHART
What a rally! One last hurrah for the bulls
perhaps? I think so, but it’s cutting it close. I have added Fibonacci
retracement levels of the move down from all time highs to the recent
low. While I expected a deep retracement, I didn’t think it would get
this high. I was targeting the 76.4% level at 16958 and I positioned
myself accordingly. Then price just seemed to take that level in its
stride. I’m generally not a day trader but I was left with no option
here. A nice little sell low, buy high action. As Homer Simpson would
say, “Doh!”.
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