THE DOW DAILY CHART
The INDEX has been in a TORRID march higher. Now we see a possible CORRECTIVE structure that could test the bottom of the channel. This is significant for us, as a break could signify a deeper, more prolonged sell-off. This coincides with a PIVOT in MONETARY POLICY.
The S&P index also appears to be set for a corrective move lower. We identify a DOUBLE TOP and a NECKLINE, that if breached, could open the index to a deeper sell-off. There is also a channel that could be compromised.
This index has been the most vulnerable lately. This structure is corrective. A break of this structure and the INDEX could correct deeper.
We EXPAND on the NASDAQ to illustrate the potential corrective move if support breaks. We are close to minor support. A break of this level opens the index for a deeper corrective move. Our base case is that this is should not be a major corrective sell-off, but we are respecting price and will continue to monitor the activity.