Dow Jones – Weekly Analysis

Of all the major indices, Dow Jones probably took the most spectacular—and certainly the most scenic—route to reach our target. There were twists, turns, and enough detours to test even the most patient traders. But the candles knew where they were going all along. Following them simply required a steady hand, strong nerves, and, let’s admit it, a certain amount of steel in one’s… convictions. Once again, the candles were right. But reaching the target is one thing. What happens next is a much more interesting question. And we have a hypothesis. Not a wild guess, but a scenario supported by several independent technical signals. Let’s see where the Dow might be heading next. CANDLES & TA Dow closed the week with generally bearish candles across multiple timeframes. The daily chart suggests bearish continuation following Thursday’s powerful breakdown below both the 50 and 100 DMAs in a single move. But…