The Dow had been the worst of the major US indexes on the short-term view (NDX led to the downside but formed a ‘W’ pattern as noted yesterday). Now the Dow is following SPX in breaking the short-term trend line after negating its short-term bearish pattern (tell me again how TA, and (especially pattern trading) is a stand alone discipline?
The markets may keep a bearish bigger picture intact, but that will not be known until a lower low is made, using the April highs as the reference point. Meanwhile, it’s short-term bullish. FWIW, I limited losses on a couple shorts but kept the SPY short because it is un-leveraged and I am net long. The April highs would decide on whether that is kept.
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