TMS Market Update - Dow Jones Party Time?
Once again as mentioned before the special price could not last forever and after Monday 14th June members will not be able to join TMS at ANY annual rate as places will be filled to capacity after our extension ends. New members will only be able to join TMS on a month to month basis charged at a flat rate of $74.
Last week the Dow Jones produced a high of 10315 in which Thursday's session ended virtually flat and with it our members knew all about the problem territory for the Dow: 10258 - 10352.
Looking back at Friday's action now coupled with declines today, Thursday's close simply seems far away. However is all lost for the stock markets right now?
We mentioned on Friday how attention needs to be given to the Dow Jones 10000 mark and the 120 Euro mark - 'IF the market can hold the level then over the next session we would expect a move back to last week's highs'.
Both the Dow Jones and the Euro spent around 3 hours or so playing around with those mentioned round numbers on Friday before the market simply agreed to reject them for now.
The following chart was shown for the Dow Jones Industrial Average in which tradingmarketsignals.com stated that the market must decide which channel price should respect for now.
The Dow Jones must decide which channel the market is to make! This is a current four hour chart. 10000 is the pivotal mark denoted by the blue line. We have just dipped below and regained it. It is not as simple as that though. We could snap it again and start a deeper move lower for next week in which the price will be respecting the wider red channel and the yellow lower price prediction would be applicable. On the other hand the market could easily hold 10000 and start to recover today/Monday in which we could visit yesterday's highs again next week in which if the market takes them out then it will likely test them again and take off higher. The resistance as mentioned was 10258 - 10352 and that is the failure and we got the pullback as we expected.
Now we will strike on 1 of 2 scenarios.
- A deeper pullback to new lows for 2010 could occur
- Or bounce time and out of resistance and back to highs of 2010
It is now clear that the Dow Jones is to acknowledge the wider channel. After Friday's nonfarm payrolls solid declines some follow through must be expected as that normally tends to be the case. TMS will keep a look out for double bottom likeliness at 9775. The 9700-9690 would also be a great reaction point in which the market could simply bounce in significant fashion.
The washout pure extreme case would call for prices to hit the 9640-9625 marks which would come across truly ugly but they are levels that have been projected in line with the chart above displaying the wider channel. The SPX and NASDAQ will follow very similar patterns. The chart below shows the current action in more detail:
As the market gets rocked more at Trading Market Signals we would be happy to see a new low printed but this low won't be as ugly as everyone thinks it will be! This is because the market will have the potential for an immense bounce!
Follow the setups with us at tradingmarketsignals.com - non members please be advised that our annual subscription will only be available this week after which it will only be possible to join TMS at a monthly rate of $74.
As volatility increases, the action plans change. In this type of action lethargic behaviour is normally punished and the greatest form of trading shows absolute dynamism.
In fairness the price on the side will always simply be a number. Don't get emotionally attached as to what the value will be as the primary and sole aim should be to trade the markets.
If you want to trade and learn the best way to strike the markets then come and join us. The Dow Jones hitting 9000 or 11,000 will not have any significant bearing on being able to obtain consistent gains from the markets.
Trading market signals will provide you with the unbiased direction you're trading requires. TMS will be closing its doors to retail members later this year. Institutional traders have become a major part of our membership and we're looking forward to making them our focus.
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