The Hourly DJI Chart broke down after hitting key resistance and broke down through support. After doing so it did not even try to test the pivot level and support was broken. The trend is down and although oversold does not look inspiring::
The 4h DJI broke down from pivot but was able to stage a test of R1 (a rolling resistance point) and pull faintly above pivot several times maintaining a congested downtrend. Finally it broke down after hitting resistance and support failed.
The Weekly Chart However paints a different picture and shows the DJI in an uptrend that looks to be overbought::
The news on the streets is that the Greece situation is still a problem and that China is experiencing the effects of the global slowdown. This means that debt is still a problem and there is a possibility of a deeper downward correction. It is possible that a range will form before the market chooses a path of least resistance.
Crude Oil, Gold, EUR-USD are also all down over economic woes.
The EUR-USD in 1h timeframe broke through pivot and fell through support. Also forming what looked to be a head and shoulders top that conveniently broke through pivot creating some confluence of the strong breakout to the downside. (click image below to zoom in on chart)::
The H4 EUR-USD was equally inspiring to the downside as the H1 with a break-through in both Pivot and Support::
If you like my style of charting you can get the full system I use to plot my own trades here or click the animation to the upper right of this post.
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