Trade on the side of the blue channel and if price is below the 50% level (10341) the bias is to move down into support"
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DOW Weekly and 5-day pattern.
Tuesday has followed the 2nd day reversal pattern, along with a breakout of Tuesday's lows.
The DOW hasn't moved as far as support levels, but the 2nd day reversal has close below Tuesday’s 5-day lows , which often favours more downside the next day.
Even though the expectation was that the first 2-days would move down towards support, I’m beginning to feel that trends are slowly unwinding and drifting lower in the first Quarter of 2010, as per Weekly report. (Larger timeframe reversals)
As pointed out in the most recent Weekly report, the only way I would get a ‘short’ term bullish again would be to see a Daily HOOK pattern back above the 50% level:- Higher Daily close above 10341
However, because of the breakout on Tuesday, I don’t see that happening on Wednesday.
Price is still trading above the higher timeframe support levels, but at this stage I would respect the trends of the lesser timeframe 50% levels and stick with the short-term trend.
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