DOW JONES The dominant short-term Channel. What it shows next.

The Dow Jones Industrial Average (DJI) is currently pulling-back as yesterday's rebound has failed so far to break the Channel's median. That is the Channel Down, the dominant pattern, that the index has been trading in since the August 16 High. As you see that middle trend-line has been holding a key role within this pattern.

The current price action resembles the accumulation mini phase of September 02 - 07, where the price was supported on a Lower Lows line that eventually pushed it above the 4H MA50 (blue trend-line) and the Channel's middle, to rise to the top of the Channel, eventually getting rejected on the 4H MA200 (orange trend-line).

With the 4H MACD on a Bullish Cross, we are expecting Dow to reach 31700 and make a new Lower High within the Channel Down within a 1 week horizon.



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