I Was Not Surprised

To be honest, I just can't find anything new to add to this post that I have not said in my previous post. Although the DJI closed with another new low, I was not surprised. It closed with another confirmed low at 7365.67. This mean the DJI will see lower low. Once again, the broader market indexes did not closed with new low. In matter of fact, the Nasdaq 100 actually closed up. Furthermore, the price action from Friday's session for many indexes and stocks formed reversal candle patterns such as hammer, doji, and bullish engulfing. These patterns can be a sign that a rally is coming, or it can simply due to the pinning action caused by option expiration. But in either case, I won't be buying inverse ETF such as QID, SDS on this rally. I won't rule out buying DXD since the DJI will be making a lower low before this bear market ends based on the Dow Theory. Until the market tells me my current assessment is incorrect, I will continue to be cautiously bullish. If the broader market indexes fall back in sync with the DJI, then I will revert back to 100% bearish. Good trading to all of you and keep listening to what the market has to say when it make its new low.

Here are the updated charts.