Our research shows after we forecasted last weeks strong move off recent lows and Fridays broader market positive open and subsequent negative downside of 150 points, we now need to consolidate quickly and hold the 200 day moving averages no later than the middle of this upcoming week if we are to resume a strong upward trend and stay on track to attempt a retest of new highs established just over three weeks ago. If we see a retest or break below the 200 day moving average this week, it may put our previously discussed DJIA down side targets of 15,600-15,800 into play.
Last week just before Friday’s late morning sharp sell off we sold over 15 stocks and 30 ETF’s sidestepping the 150 point drop. These were positions we bought at recent market lows when the DJIA was trading down around 16300 -16400.
For more of our great forecasting and market calls please review our previous broader market research updates and chat commentary timelines via the Trade Reversal App, our online real time chat journal or blog section at Tradereversal.com
This coming week we’ll continue to remain cautious and look for short term trading opportunities only unless otherwise noted.
Have a great week.