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Indu Approaching Psycho Resistance

Dow Jones is approaching the 11,000 psychological resistance.

The good news is that it was able to do a pullback before tackling that pesky resistance - courtesy of the 10,973 fibo extension resistance that provided the pullback or consolidation range.  Higher probability now that 11,000 will not be very hard to break as it was able to make preparation for the next assault.  Flip side is that if the preparation proved in-adequate, then bullish traders will be scampering for cover.

For the SnP500;  the charts have morphed from predictable into unpredictable.  It is now forming a sequence of stair step higher highs higher lows.  This type of run is what I call "Heaven or Hell".   It is a type of run that indicates either a running correction or a terminal triangle has a potential of forming.  The implication is that the longer it goes, there is a potential that a ii-nd wave is forming and the rally will continue way past my simple 1-2-3-4-5 wavecount maximum target.  Or - it might slowly form a terminal triangle and the rally abruptly ends at the completion of the triangle.


I sold half of my ES trend trade positions today after closing time as a precautionary move - just in case the terminal triangle proved to be the correct pattern.  Still holding all YM longs bought at 10,673 a few weeks ago and 10,810 yesterday.

Hopefully, Monday will be another rally day and it should break above the upper uptrendline resistance with force.