What TMS stated 1 Month ago:
Yes only a month ago the Dow was sitting approximately 1000 points lower when TMS favoured upside and with it we waited for the four chart above to give us the green light and boy did we get it! So the story after the upside burst was about 10400, 10600 and 11,000 once again.
What TMS dissected 2 days ago:
The resistance that everyone watched was 10600 and with it the majority took it for granted that 11,000 would print again. TMS was behind the rally over the last 1000 points but wasn't convinced to be behind the hype for the possible next 300 point move to 11,000, as for us it was all about the chart above!
If you enlarge the chart you can see the very recent high printed. We stated that if the market can't close above this zone for the week then you can forget about 11,000.
TMS even went one step further and painted the start of the decline in the white projection line shown whilst the Dow Jones market sat at 10700!
What TMS says NOW!
300 points higher or lower?
The question is do we rally 300 points and head back to the recent high or do we plunge 300 points and print 10,000?
The market has a few possibilities. A rally/bounce could emerge with ease but either way we would not like to see a snap of the red trend line otherwise 10,000 would be set alight.
Likewise the index can issue a short term dead cat bounce in which 10400-10500 is seen again from which the market would simply plummet down to 10,000.
Should the market issue a v-shape rally back up then we would feel this needs to start no later than before tomorrow's U.S. stock market open or within the first 30minutes of the open.
We're not over analysing the situation by writing a little book on where the next move may take us.
At TMS we'll use the KISS approach; keep it simple & stupid, we'll leave the analysing to the so-called professionals that always escalate the over analysis of markets AFTER the move is delivered! Follow the action with us and with our TMS system signals in our New live trading room.
www.tradingmarketsignals.com has nailed +512 points already for the month of August with our TMS system in which ALL our member have accessed these signals live and that's only from the five major markets that we follow; Dow Jones, FTSE100, GBP.USD, EUR.USD & Crude Oil
To obtain analysis of this kind with TMS system signals that produce REAL market moves, it would probably be wise to look at the link for membership below in which you can join the TMS private member community.
At TMS we have just opened our live trading room where the signals are not just for the position style suitors but also for the intraday and short term traders!
Membership offer ends after the U.S. market closes on the 31st August 2010: http://tradingmarketsignals.com/#/tms-annual-membership-offer/4542738012