Will the Dow Jones Rebound Stick?
Refer to this chart below (click to enlarge) that I made several days ago before The Fed’s announcement on discount-window interest rate cut.
However, after The Fed’s announcement, we can see a very big rebound which succeed a long doji the day before (my guess is, the news might already leaked and some smart money is using that to go shopping). The rebound however is rejected at its resistance level and the only way to confirm that all of the selling pressure has ceased is only when Dow can close above it’s descending triangle resistance. Anything lower than that can and will confirm the bearish move (click to enlarge).
Thursday late rally move is creating a kangaroo’s tail, a good reversal sign (in this case from bearish to bullish), but only valid if DJ30 can close between 13100-13200ish range. We’ll see about that tonight.
