Dow Jones Industrial Average - Point & Figure
The Lost Art of Point & Figure Charting
A few old timers may appreciate what this chart is setting up, but for most you will have to take my word for it. The lost art of Point & Figure charting has identified three major price levels (in red) that if broken will lead to a market panic heading straight for a test of the March 2020 Covid Crash lows @ DJI 18,000. First, the Dow will have to slice below an ATR support level @ 33,300, but that is only about 400 points below current levels. If and when that happens, a red Sell arrow will appear on this chart and markets will be shifting into pre-panic mode with one last chance to put on bear market option positions. If alternatively 33,300 holds, summertime will be all sunshine and roses, at least until after Labor Day. Don't count on it.
Not shown is VIX, a chart we are following very closely in both Blue Line PRO Trading Service and Blue Line Premium Trading Service. Under the right conditions, i.e., a VIX Intermediate Term Buy Signal, we expect to put on what will become our best trade of the year in either service in VIX calls. That is saying a lot because that particular title is currently held by this TSLA trade in our PRO Service:
PS: CPI due out Wednesday, July 12 before the Open. Eyes on the prize.