daytrades august 5 pre-market, page-49

Okay, I don't want to be a "told ya so" because I am mildly surprised myself with how rapidly the markets deteriorated last night, but I posted this chart on a thread a few days ago.

Its nothing fancy, but you may find it interesting.



There is a distinct, albeit obscure, H&S pattern signalling a reversal in trend. We also have the lower double top recently which is normally quite a damning technical pattern.

In other words, we may see 11,000 short term but our markets aren't quite ready to collapse lower than that just yet. Why? Well 11,000 is quite firm support on the Dow, and it may provide a bit of balance for some short term reprieve. Trouble is, we are still another 300 odd points from there, so we might face a few more rocky nights over there yet.

Just my opinion; don't trade on it, because I'm wrong just as often as I'm right.