Dow' monthly2
Dow'weekly1b - H/S scenario
Summary
*a notable red candle on the monthly 'rainbow' chart... the first since Sept'2011.
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With severe technical breaks in stocks like AAPL and DIS, the Dow is a broken index, and looks headed for the 17000 threshold in the immediate term.
Price structure on the weekly cycle is a clear H/S formation, and is highly suggestive of the 17000 threshold before first opportunity of a bounce. Much lower levels look due across the next two months.
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Looking ahead
Friday will center around the monthly jobs report. Mr Market is expecting net gains of 212k, with a headline jobless rate of 5.3%. Frankly, 212k looks set to be easily surpassed, 250/275 seems very viable, and would probably result in case of 'good news is bad news'.
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Goodnight from London