DJI 2 nov 12

Last post I was looking at the 4 hourly chart...now to the daily it is showing me the same thing,same conclusion -Down JOnes :)

Why i am bearish of the index:
1.Look at the trendline it has been broken
2.This five wave up is an diagonal triangle which is ends the wave 5 since last year sept 2011.
3.The break down from the strong support of 13300+.
4. Now look at the chart, the A wave down should be completed at around 13080 ( 38.2%) fibo.Now we shall look at 13290-360 (50% and 61.8%) of leg A for possible retracement of this wave B up.
5. Look at the weakness in the MACD and RSI.

If DJI is to the above mentioned targets of 13290 and 360 today or monday, look for good reversal candle stick on monday or tuesday. You can either zoom in to the hourly or daily chart...depends which one suits your trading style. Happy trading :)