DOW:-US markets have rallied, and the DOW has broken the 3-day highs, this is the 2nd stage of bottom confirmation, however the DOW is still trading below the January lows and the Weekly 50% level...
The Yearly 50% level is 12374.... (2nd stage of the bear market)
Even though there is a breakout of the 3-day highs, price is still trading inside the Daily channels, and trading below important levels, and whenever the market breaks the 3-day highs, there is an expectation of a 2-day reversal back down before heading higher next week...
I'd be very surprise to see the DOW move upwards without stalling for 2-days before heading higher on the 3rd day.
Levels of interest are 12401 (previous Weekly lows)
And Daily channel highs:- Resistance (don't short trade above those channel highs)
E-MINIThe ES hasn't broken the 3-day high but the same expectation as the DOW.....
Resistance Daily channel highs...
Note: Yearly 50% level 1374 (2nd stage of bear market)
5-day 50% level support...
We can see the coming together of the Daily channels tomorrow, when the daily channels converge together there is more chance of a breakout occurring, therefore I favour price hitting resistance levels and consolidating, rather than a breakout of the Daily channels on Thursday.
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