The Dow Held the Reversal 17120

A number of emails are coming in about how, even in a panic, the Reversal system held. The Dow crashed only within a two-day reaction. It elected the first minor Daily Bearish at 17434 on Friday. We saw the Dow fall to 17063 intraday and close at 17140.24 while holding the 17120 level. We warned on June 25, “With the closing on Friday below the first Minor Weekly Bearish at 17434, the Dow should move a bit lower now to test the 17120 level. “

Holding the 17120 level for the close yesterday implied a failure and thus a bounce. We now require a daily closing back above 15752 to imply that the low will hold for now and another retest of resistance should follow.