The Dow Is Ready For Another Move, Here’s Why

Welcome back everyone! This is going to be an intraday and swing trading video combined into one today. This is for Friday afternoon!

We have rallied back and bounced into some key supports that we have talked about in previous videos. We are also hitting major resistance on the S&P. We are also hitting the speed lines that are coming down on the S&P, NASDAQ, and RUSSELL. We are basically trapped between rising support and falling resistance. I told everyone that we aren’t in a bear market yet because we haven’t got down below the channels.

I want you to understand what that looks like on an intraday basis. This is from this morning on the NASDAQ. We went up and hit the area. It ended up pulling back. It just kept repeating that over and over. These aren’t really small pull backs either. They were about 15 points. That is nearly 3 times a normal trader’s stop loss. If you blindly jump into a trade long it can be very painful very fast. That is why I want to point that out. Only the DOW is going to hold at or near it speed lines.

Here is what I want you to know about the DOW. The DOW is actually in a position where it is close to breaking out. We are now in a very tight consolidation currently. It is within yesterday’s highs and lows. That is an inside bar. Today’s high is less than yesterday’s low. Today’s low is higher than yesterday’s low. I have also been commenting on this negative distribution. We also had accumulation yesterday too. There were two accumulation bars the days before as well. We have multiple distribution bars here too. We are caught in this ricochet market. There is rising support and falling resistance on the other three Stock Indices. We are going to see some really ugly patterns taking place here. This have even dropped further as I’m writing these. This has dropped around 20 points. That is now 4 times the average retail trader’s stop loss. This has been a whipsaw back and forth. It hasn’t been consistent and there is no longevity in these trades. I want you to understand the resistance levels that are in play.

We are looking to watch the DOW on a swing trading basis. Will the DOW start ot break through the distribution bars? Do we take off after that? Do the other markets get back above? Look at all the deep corrections that we have had. They went against the key supports. We keep getting back to the same key levels again. There is a do or die area that we are paying attention to. We have earnings coming up. We have upcoming Wealth365 Summit. You can go to www.wealth365.com/bbt to sign up for the next Wealth365 Summit. There will be a focus on the markets during the upcoming election cycle and earnings season. Whether you are a do or die republican or democrat, it is going to be very important.

This market could have some major runs or sells because of those things. Go to www.wealth365.com/bbt so that you can be best prepared by learning strategies from experts on the trading and investing site. It is trading and investing month at Wealth365. You do not want to miss that! You guys have a great night and I look forward to seeing you at the Summit and upcoming events!

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