Reversal indication on Dow Weekly Chart

I normally wait until Saturday before I read the chart of DJIA. Mainly because the data base on Friday night is not complete since Dow is on the other side of the world.


Fig 1 DJIA Weekly Chart
If I have not waited for the complete Dow data, I would not be seeing the weekly performance which seen this week's movement totally cancelled out last week's progress. A better picture still, Dow has done a 2 days, or in this case 2 weeks reversal. What I lack to confirm this is the volume that goes with the pattern. Under normal circumstances, we should see extremely high volume for these 2 weeks compared to bars prior.

Both Stochastic and RSI are also noted to be reversing with Stochastic having a divergence. Base on historical records, I would trust RSI a little more than Stochastic. Without a divergence we might not be seeing the end of Dow yet.


Fig 2 DJIA Daily Chart
On daily basis, Dow has wiped out its Thursday's move. At the same time, its new height has not surpassed its previous height. Further more, the previous high is stopped at 11,258, the point where 61.8% retracement of Dow.

If Dow continues to progress downward, we would be seeing a completion of a small head and shoulders, 20,964 would be a crucial point. Crossing this point would mean it is going to achieve the head and shoulders objective of 10,668. The support of Dw weekly reversal seems to suggest such possibility.

Dow's support line lies at 10,827 while its 21 weeks support @10276, resistance wise is the 61.8% retracement line of 11,255.