What is store for DOW.

 

As I had written earlier, DOW daily chart is still in SHORT mode.

Now why is this pull back? It has hit precisely the Fib target. Now the retracement is going on. Theoretically, the retracement should go on till 10212-30. There is no rule that it cannot fall short or spike above this retracemrnt level. However, as it shows now, it cannot go beyond this level. The reason is it is the resistance level, measured form both sides. That is as a fib extension or the 38% of the complete swing, which makes it a tough to penetrate.

 

We will see how it goes for the next couple of days…