The DJI chart below contains a pattern recognition set up for shorting the DJI, if and when it drops back below the wave i - iii - v trend line. DJI - throw-over set-up Note the two throw-over's on the charts, the first being at the Oct 27th lows led to a 4,000 pt run-up in about six weeks. If and when price drops below the latest throw over which occurred Monday and today, look for a multi-thousand point drop. If price doesn't below the wave i - iii - v trend line in the next few days, the set-up becomes a little too long in the tooth vis a vis reliability. With the FOMC meeting this week, there is a good chance of it being triggered. We will be recommending additional index puts if this throw-over set-up triggers. It will be an early entry into what could be an extended down turn, including the taking out of key levels set-out last week in QQQ and SPY.
