Both indexes have the one hour trend down. The important 2 hour trend will turn down today unless a sharp short covering rally which often happens in US when the indexes have been pushed down in Asia and Europe. DOW closed Tuesday at 12.579 and is now trading 12.495. The big traders use to push Dow on upside to take out all short positions taken during trading in Asia and Europe. At the top of that rally the big traders go short themselves and slowly let the index fall so they are the only traders with short positions. Since we might not get a 8, 21 MA 2 hour cross on downside within the next four hours which will stop a too high intervention, but just a steeper 8 MA down I think the trend will continue down. Smart traders in Europe know this and they are also waiting for a rally to short DOW and SP500 which always follows DOW in situations like this.
The timing for an intervention like this use to come after news from the US. It does not matter what kind of small news it is, it is only a way to try to hide the intervention. Today there are very small news at CET 13:00 and 16:00.
An intervention rally often gets above the top that means 12.600 area to scare the short position holders until they give in. All open stock markets in the world will also rally when DOW does it so short positions will be slaughtered everywhere. Watch up. An intervention like this happened at CET 16:00 yesterday with a rally up to a new high at 12.612 which fell back to 12.533 and closed 18:00 at the bottom. That means that one intervention group already are short and will defend their positions. But often there are stronger groups waiting to do the same.
So watch up.
The timing for an intervention like this use to come after news from the US. It does not matter what kind of small news it is, it is only a way to try to hide the intervention. Today there are very small news at CET 13:00 and 16:00.
An intervention rally often gets above the top that means 12.600 area to scare the short position holders until they give in. All open stock markets in the world will also rally when DOW does it so short positions will be slaughtered everywhere. Watch up. An intervention like this happened at CET 16:00 yesterday with a rally up to a new high at 12.612 which fell back to 12.533 and closed 18:00 at the bottom. That means that one intervention group already are short and will defend their positions. But often there are stronger groups waiting to do the same.
So watch up.
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