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Bearish close for the DOW.

/ The article is not a trade recommendation. /

Reverse formation from the resistance zone (34100 – 34300) with greatly increased volumes on the drop today. Sequential is now printed down and DeMarker has given a reverse signal. Potential start of a blue chip correction.

/ The article is not a trade recommendation. /

Put/Call ratio is starting to rise from relatively very low levels of the last year, which also supports the downward correction scenario.

Vix is at its lowest values for the last year, also in confirmation of a potential reverse.

The up trend is still valid, but given the strong resistance zone and all the reversal signals, an upward breakout is very unlikely during the reporting season. A break of (33300 – 33500) will confirm the development of a downward movement. A potential target is the support zone, where strongly increased volumes are observed (32000 – 32500)


 Dealer Radoslav Valov

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