On Tuesday, we discussed the possible breakdown under the neckline, and now that it's done, they are all starting to panic because the sell button seems obvious. What we have to be careful of now, if a gap down on the open followed by a reversal back up into yesterday's low that will trap the panic sellers. We're looking for a bounce of a single day to try to position for some shorts on a swing basis at this point.
We measured the head and shoulders pattern on the daily Dow Industrials chart, and in yesterday's trading, it came within 50 points of the initial downside target already.
04.03.11 09:29 #