#Dow Jones Diamond Formations

The Dow is inside a diamond formation on the daily chart. It seems to me that it will be a reversal pattern. Depending where the pattern breaks, the minimum objective target should be around 10.500 - 10.600 points. There is also a confirmed MACD bear divergence that will send price initially to the 10.900 points level. This is a must reach level. Timing, however is unknown.

I also have indications that price will head even lower. The monthly chart demonstrates a huge broadening triangle formation that could become a diamond formation. This one, however, would be a continuation pattern. If and when price reaches around the 8.000 level and bounces, we should have a complete formation. Therefore I expect a bearish Dow for the next years before it turns back into a bullish trend.

Only history will tell how all of these will unfold. However, when I put together all the analysis regarding the USD, the EURO,commodities as  well as other currencies, it makes all the sense in the world.

Lets see how all this unfolds.

Best to all.