Last week, Dow Scenario1 rejection of 34605 short yielded 900pts
(trail stop TP).
With this rejection, DOW now exhibits rotation behavior
34605 - 32789.
Possible scenarios:
1) Rotational play: Trades can be executed at boundary of rotation
range 34605 / 32789.
- Long if supported at 32789
- Short if rejected at 34605
2) Rotational breakout/breakdown:
- If price breakout, long when price retraces and finds support
- If price breakdown, short when price retraces and is rejected
Volume Analysis:
Weekly: Low vol wide spread S>D bar = weakness
Daily: Ave vol up bar close at high = No demand
H4: High vol up bar closed off high = minor weakness
Price reaction levels
Short on Test and Reject | Long on Test and Accept
35750 35228 34416-34605
32789 30513
28635
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Have a profitable week ahead.
