Feb 5th – The Markets Have Spoken
The markets have spoken. They have been ripping higher for weeks and they said, "I need a rest!", and so we had another scalding drop in the markets on Monday. We were expecting a drop into a dcl, but it looks more like a drop into an ICL, since we are overdue for a good ICL too. Let's take a look at Monday activity...
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DJIA MONTHLY- Recently on this chart I pointed out the accelerate rate that the Markets jumped in 1 month. That Monthly candle was a lot bigger than the rest, like panic buying in January.
DJIA- Now the Dow dropped 666 points on Friday and was down almost 1600 points at one point on Monday, wiping out January & Decembers trading. You can see the benefits of a trailing stop when these markets climb relentlessly.