"with more bad news streaming in throughout the week, I anticipate we'll close lower next Friday than we did this last Friday and expect that we may even test the 6,400 levels throughout the week."
"I anticipate (based on oversold conditions/falling PPO and quickly approaching 1995 support levels) that we may see some further downside in the days ahead, but due to these same issues the DOW will likely find downside support soon and then it will follow up with a nice rally (8K) - before falling to new (significantly lower) depths."
Updated DOW Chart (from today) below:
If you noticed, four days after that March 5th post the DOW indeed did test the 6,400 level then followed it up with a huge rally - nearing 8K.
That rally however may now be close to an end... If you take a look at the green circled area, you will note that the Percentage Price Oscillator (PPO) lines have moved out of the oversold areas and the Black (shorter term) line is turning downward. If the black line crosses back through the red line, it will likely continue falling for a bit.
Also note that the Chaikin Money Flow (CMF)has shown a nice reversal and has pulled out of it's previous condition.
With all this said, the contentious G20 meetings start this week and various US economic data points/reports will be released throughout the week (e.g. Consumer confidence; ISM Index; Motor Vehicle Sales; Construction Spending; Factory Orders; And the Big Ones -- Jobless Claims and Employment situation). I anticipate many of these data points and the news from London to be bad - and with market oversold conditions now somewhat resolved, I expect the DOW (and other Major US indices) to close lower this Friday than they did today.
Just my 2cents - not investment advice