If you were reading the TMV Swing Trade report last week, you know that I said the the Dow Jones futures should trade lower into a cluster of reversal dates due on Thursday (July 1) and Friday (July 2). The Dow Jones futures reached the downside target objective during Thursday’s session and closed on the up-sloping reaction line support. I also suggested that the cluster of reversal dates, suggested the Dow was most likely finished on the downside and was due to reverse. This reverse could begin late Friday or early Tuesday morning. Here is it Tuesday morning and the Dow Jones futures are trading 160 points higher!
Once again you can see the potential that comes from understanding price action and using the “action-reaction” trading techniques to project potential future turning points. Knowing in advance where the market could end a strong price move and enter a consolidation pattern or even reverse, can give any trader, using any trading methodology, the added edge to improve their trading.
