• 396 days Will The ECB Continue To Hike Rates?
  • 396 days Forbes: Aramco Remains Largest Company In The Middle East
  • 398 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 798 days Could Crypto Overtake Traditional Investment?
  • 803 days Americans Still Quitting Jobs At Record Pace
  • 805 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 808 days Is The Dollar Too Strong?
  • 808 days Big Tech Disappoints Investors on Earnings Calls
  • 809 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 811 days China Is Quietly Trying To Distance Itself From Russia
  • 811 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 815 days Crypto Investors Won Big In 2021
  • 815 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 816 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 818 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 819 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 822 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 823 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 823 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 825 days Are NFTs About To Take Over Gaming?
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

Joseph Russo

Joseph Russo

Joe Russo is an entrepreneurial publisher and market analyst providing digital online media solutions designed to assist traders and investors in prudently and profitably navigating…

Contact Author

  1. Home
  2. Markets
  3. Other

Line in the Sand for the next 470-pts of Downside in the Dow

To say that the markets have been rather erratic on a day-to-day basis of late would be an understatement. However, despite the rotting long-term fundamentals surrounding the slow-motion implosion of intractable debt around the world, compared to the rollercoaster ride last summer, the current season has been a walk-in-the-park with an upside bias to boot.

Given the bipolar price action, one would assume it virtually impossible to draw lines in the sand, which impart specific point values and price targets effectual in capturing such erratic moves.

Behold the 30-minute price chart of the Dow rendered from the archives of our Near Term Outlook publication. Amid the chaos following the recent print low of 12492.33 in mid-July, we cited two upside price targets worth a combined 799 Dow points at 13066 and 13116 respectively.

DO# 30-Minute Bars

On July 30, the Dow set a pivot high of 13128.48, capturing our two bullish upside price targets handily.

Then, on Wednesday August 1, we set another line in the sand. This one cited 260-pts of downside upon its breach with a target of 12800.

As illustrated, within 24-hours, the Dow plunged marginally in excess of said 260-pts, and tagged the downside price target of 12800 upon setting its pivot low at 12780.42 prior to Friday's rocket launch north of 13133.

All told, in the past two weeks, we have identified and captured over 1000 Dow points amid a market that has no apparent clue as to where it belongs.


So, where do we go from here?

Well, according to our chart, 13462 appears reasonable for an upside target however, a 470-pt bearish line in the sand may have something to say with regard to such near term prospects.

As we head into Monday, the 12839 level defines boundary to this bearish line in the sand, and by Wednesday, the line narrows its breach point by 100-pts at 12939.

To follow such illustrations regularly, one needs only to support such effectual efforts with a modest subscription to the Near Term Outlook.

Let the games continue, and let the most prepared and disciplined take home the most gold.

Gold Medal

 

Back to homepage

Leave a comment

Leave a comment