June Dow Jones â€“ Dow Jones futures traded above 11,000 for the first time since September of 2008, after Greece was offered a $61 billion rescue package. The Dow Jones posted the third higher close after finding support at the up-sloping median line and 20-day SMA. Â The long-term upward trend remains intact with a target objective at 11,286, the .618% Fib retracement of the major downward swing that occurred between October 2007 and March 2009.
After confriming the bullish TC (trend continuation) pattern on March 2nd, the Dow Jones futures stalled at the prior pivot level and even backed up to test support at the lower parallel line. However, the bullish cycle held and propelled the Dow Jones futures past the previous high with good seperation. This keeps the bullish cycle intact with the next target objective at 10,687. To learn more above how to apply the action/reaction method to you trading check out â€œUnlocking Wealth, Secret to Market Timingâ€ or check out the youtube video at http://www.youtube.com/Tradersnetworkinc
In last night's TMV Swing Trade report for 1/15/10, I said - "Dow Jones futures advanced into the January 14th reversal swing day in spite of the U.S. Commerce Department report that retail sales were down .3% in December. This was weaker than expected. They also said that inventories were up .4% in November, more than expected. The upward trend remains intact, but the Dow Jones is trading the weak side (below) the ascending median low; at the same time, it is testing the sloping reaction line target objective. The short-term cycle is near completion and the market is due for a correction. A trade below Thursdayâ€™s low of 10604 will end the cycle and trigger a sell signal.Â Sell the Dow Jones at 10599 stop, with a stop loss above the swing high." The 1/15/10 trading session open steady to slightly higher before tumbling below the prior day's low and trading to a daily low of 10508.
Currently short from 10360 â€“ last price @ 10378 - December Dow Jones futures reached a new yearly high on the projected reversal swing date December 2. Â On Thursdayâ€™s â€œtrail dayâ€, the Dow Jones reached the new high and reversed just below the descending reaction line target objective
. The Dow Jones futures ended the session as an â€œoutside dayâ€ with a lower close. This is a negative pattern and could mark the beginning of a significant correction. Â Â Hold the short position, with the stop loss at 10442.
December Dow Jones futures reached a new yearly high on the 12/1 reversal swing date. So far the Dow Jones futures have not reached the target objective of 10,600 at the sloping reaction line.Â Time and Price are in alignment so this could be the beginning of a significant high or at the least a short-term correction. The closing price on Wednesday and Thursday are critical for a confirming sell pattern. I will keep you informed to any developments in this market in the Traders Market Views Swing Trading report. This pattern can provide a great signal when market timing futures
The Dow Jones futures reached new 13-month high one day before the predicted reversal swing. The Dow reached the reaction line target objective (the downward sloping line) one day before the November 19th reversal swing date. The target objective and the reversal swing date were predetermined several days in advance using the Action/Reaction theory of Market Timing Intelligence. To learn more above this Swing trading methodology go to www.reversaltracker.com or www.tradersnetwork.com.
The Dow Jones futures paused and traded lower after reaching a new high at the reaction line resistance.Â Â The cycle remains bullish, but the Dow Jones futures are losing momentum and may have a hard time closing above the reaction line. A lower trade on the November 19th reversal swing date could trigger a continuation, whereas a higher trade would set up a possible reversal.
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December Dow Jones futures breached the 10,275 target objective and reached a high of 10,289. After six days of higher closes, the Dow Jones futures are a little overbought and due for a corrective pullback. The three closes above the ascending median (center line) suggest the bullish trend is still in play with the the next reversal swing day due on November 19th. I look for a 2 or 3 day correction to form a bullish reaction swing and build energy for the next run to the upper reaction line target objective.
December Dow Jones
â€“ Dow Jones futures traded on both sides of unchanged today, as traders looked for news to support their positions. The FOMC began its two-day meeting on Tuesday, but it is widely held that the committee will leave rates unchanged. But the real story will be in the comments made after the meeting. As for the charts, the market is moving to the right of the ascending median line, signaling a loss of momentum. Wednesday's rally has the market approaching the 60% sell zone and a possible TR sell pattern.
December Dow Jones
â€“ Dow Jones futures rallied today after finding support at the lower ascending parallel line and a â€œdouble crossâ€ of the 20-day SMA. The rally was triggered after the GDP report showed growth in the economy, suggesting an end to worst contraction in seven decades. The rebound followed Tuesdayâ€™s projected reversal swing day and missed the swing low by one day. However, the rally stopped short of entering the 60% sell window and reaching the descending reaction line resistance. The market may have some trouble at this level, so I will need to see another session before taking a new position.