June 14, 2020, 11:45 pm EDT
Major Reversal Challenges 3-month Channel
It is important to examine the DJIA chart carefully to see what happened on 06/11 Thursday 1800 points drop and 06/12 Friday near +500 points rebound.
- Gap-down breakdown caused island reversal that provided a hint for termination of uptrend
- 3-month uptrend channel is at great risk of breaking apart, though it was barely saved by Friday closing
- Once it breaks (if by Monday), DJIA officially enters into a downtrend move.
- 23000-24700 zone provides buffer and 50 DMA becomes critical key level to determine if rebound can work
- Above rebound or support zone could defend the downtrend for a while. But, if it breaks, then full scale downtrend will carry DJIA to basement 18237