The Dow Jones futures continue to rally off the May 25th reversal swing date after closing lower on Wednesday. After making a corrective rebound into the 60% sell window on May 13th, the market turned lower and resumed the downward trend. The May 13th high was the final pivot of a bearish TC pattern (trend continuation) that began on May 7th. I used the TC swing pattern to do a reverse/forward count and used the results to project the future reversal date for May 25th and a target objective of 9600. After the May13th pivot high (10917) the Dow Jones futures continued to trade lower and finally posted a low of 9757 on the May 25th projected date before reversing and closing at 10040 by the end of the session. The market fell short of reaching the target objective, but the time had run out and the market reversed on the projected date. This price action set the market up for a corrective rebound that reach as high as 10500 in the first week of June.
This chart is another good example of the how powerful the “action-reaction” theory can be when used in conjunction with the reversal date indicator. In previous issues of the TMV Swing Trading Report I have shown how April 27th was projected as a major turning point in the Dow Jones weeks in advance and now the major low was also projected my using the same methodology of Market Timing Intelligence. If you are not receiving the TMV Swing Trading Report you can get a free trial subscription by calling 1-800-521-0705 or clicking on the link.