Bears are out but will the move lower be short lived

Index Analysis DOW JONES

Time Frame : Daily

DOW JONES Index

DOW bears have had a bit of fun the previous few sessions being helped by Trumps comments Sunday that the US will raise tariffs on China imports. Price was hovering around resistance at 26718 so the news was a good excuse to squeeze out some buyers to potentially setup another run higher. The key level we see is now at 25325 which is the major anchor to the leg up. The coming few days will be the tell to which way the market will go and if China come to the table with some concessions, then expect no raising of tariffs and a strong bounce back within the channel. Of course, if the tension increases, then all bets are off and sellers will come out to play and potentially drive price through 25325…then things may get ugly.

Index : Dow Jones Futures

Current Price : 25988

Status : On watch for a potential short squeeze through to new highs

Alert History

Previous Alert 28/03/19

Index Analysis DOW JONES

Time Frame : 4 Hourly/Daily

DOW JONES Index

DOW bears may be licking their lips and price is looking heavy but is the price action a trap to squeeze out the shorts for a push to new highs. We see price is holding minor lower highs and also higher lows but is hovering around oversold levels. Even as concern over the Bond Yield curve is holding buyers back, we see the potential for sellers to get trapped and then a spike to resistance around 26575. There is still some work to do before we see either side take controls so watching the action for now.

Index : DJI

Current Price : 25625.59

Status : On watch for a potential short squeeze