The Dow's knee-jerk dive in reaction to the Fed announcement, (staying the course on interest rates) creates a "Sell Pending" basis the close of trading today. As the chart below indicates, this massive support surrounds the Dow 34,000 level as well as the support trend line coming up from the "Covid panic" low on March 23, 2020. Both that trend line and 34,000 become major support which if broken convincingly would generate a Sell in DIA, SPY or IWM. Coincidently, as I am writing this the Dow is right at the 34,000 level. Unlike the past two weeks, all indexes are lower by about 1% which if it holds into the close is the kind of unanimity needed to suggest an intermediate term decline is imminent. Sell Signal Pending: DOW close below 34,000 Option: One strike out-of-the money July 16th puts in DIA, or SPY, or IWM.
