I wasn’t surprised to see the Dow shoot up late in the afternoon after it broke out of the symmetrical triangle it was trapped in for most of the day, but I expected it to stall around the 7965 level, which was the previous low. It shot right through that and now could easily move a bit higher near the 8200 area at the open, before some type of selling wave comes in.The RSI has a clear range to monitor for a fresh breakout or a rejection at the upper trendline.
Or maybe the bottom was just put in and we rally to 10k. The one good thing is my crash theory may be put on hold as if it was going to occur I would have expected the markets to stay under pressure. This up move releases some of the oversold state we were in and leaves the door open for further gains.
