Rebound or Reversal ?

Is Dow rebound or reversal ? Rebound means a brief up trend but will return downtrend.

Reversal means termination of downtrend and reverses to new high. In this case, it is more likely a rebound not a reversal. Reason is that series gap-down, high volume distribution, and crossing down 20/50/200 DMA are evidence of change of direction.

Therefore, it is important to wait the end of rebound which will be the beginning of next sell-offs. It could happen either this week or next week.

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