pebblewriter

Tag: Bear Market

  • Update on DJIA: Dec 11, 2018

    In our last update on the Dow, we noted that it had not only fallen through an important trend line but its SMA200 as well. From All Good Things on Oct 11:

    DJIA is flirting with breaking below a long-term trend line and SMA200.  A failure here opens the door to 23781, another 6.2% lower.

    Two months after the breakdown, DJIA is indeed flirting with the 2.24 extension at 23781.  Like SPX, it has completed a Head & Shoulders Pattern as well as a Flag Pattern.Also, like SPX, it came up just shy of its .886 Fibonacci retracement yesterday (23881 vs 23781.)

    The big question, then, is whether it’s done or whether it’s simply preparing for a more dramatic plunge.

    continued for members… (more…)

  • Update on COMP: Dec 7, 2018

    Don’t look now, but COMP is approaching our 6760 target.  As we discussed on Oct 10 [see: Plan B] COMP faced significant downside if its 200-DMA didn’t hold.

    Bottom line, it didn’t.  It was off as much as 13.3% last month before beginning a bounce that was destined to fail.  Next week, it will get another chance at tagging some meaningful support around 6760-6800 – depending on whether it happens Monday or later in the week.

    Members will recall we had two near misses on the 200-DMA in Feb and April, followed by a breakout that defied logic.  Now, two months after it broke down through the important moving average, COMP has been laid low.

    Can it hold here, or will AAPL’s continuing meltdown drag it even lower?

    My 144.48 target for AAPL remains unchanged since Nov 14, the day it broke below its SMA200 [see: When Push Comes to Shove.]  Then……and, now.

    Stay tuned.