Dow Futures: Price Action Analysis 7-MAY-2016

Out of the 3 main American Indexes, the Dow Jones looks right now the strongest. So currently it is better to look for bearish opportunities in the other two indexes (S&P500 and Nasdaq100).

The same Daily bearish setup that exists on the S&P exists in the DOW as well, but the path to reject that bearish setup is much shorter and easier in the Dow.

Taking out the High of last Wednesday at 17700 on this very Monday means that the current bearish setup is most likely rejected. In that case, it is better to cut the loss than to wait for a probable Stop hit at the Weekly High.

If, on the other hand,  we see more consolidation on a day or two, and only after Monday the 17700 level is taken out, then it is still bearish, stops above 18832 (The Weekly High), and possible target for the Daily bearish setup is at 17320 ~.

Currently it looks as if the market “needs” another week of consolidation before the real next move starts, so do not be surprised to have a small range week, and the short term direction decision might be delayed till next week.

Strong resistance levels to pay attention to are at 17740 and 17870 till 17890.

Strong support level is at 17400.

 

Disclaimer: Anyone who takes action by this article does it at his own risk and understanding, and the writer won’t have any liability for any damages caused by this action.

Gil Ecker

[email protected]

Market Analyst and trader

You may also like...

Rules of Discussion on Dow Futures: Price Action Analysis 7-MAY-2016

1. This forum is for discussion of financial markets. Please respect others view even if they are contrary to you.
2. Member's comments should lead to value addition in forum discussion.
3. If anyone is found making repetitive Explicit/Abusive/Racial comments, his account shall be banned and old posts will be deleted.
4. Providing Advice/Recommendations/Tips is fine but it should be free. Members cannot ask to be paid for it. Paid Advice is stricly prohibited
5. Spam links are not allowed. Self-promotion once a week is allowed. Too much promotion or using Contact info in ID will lead to account ban.