The Dow Jones Industrial Average ($DJI) has dropped steadily for two weeks after briefly topping 11,400 earlier in the month. However, the Dow is now sitting at a major line in the sand, which could provide the next important move for this index. Read More..
L3 Support
The Dow has honored important Camarilla pivot levels throughout the month of November; first rallying to the H4 pivot level at 11,415, before dropping to L3 support.
Now the index is taking a breather at L3 support ahead of the next major move.
If L3 continues to hold at 10,970, we could see a rally back toward 10,200. However, if L3 gives way, look for a downside continuation to L4 support at 10,825.
Inside Day
The Dow has also formed another Inside Day relationship, whereby yesterday’s price range is inside the price range from two days ago.
As you know all too well, Inside Days can lead to explosive breakouts in the market. Look no further than two days ago when I wrote “Breakout Day for the E-Mini NASDAQ 100”, which forecasted the breakout and trend day for the session.
Keep an eye on yesterday’s range (11,045 up, and 10,990 down) for a decisive breakout. If price opens the session with initiative buying or selling beyond this range, we could see a very nice breakout/trend day on our hands.
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PivotBoss.com
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