What’s the Answer to This Emotional Roller Coaster?

In this Chart of the Week,

We review the Dow Jones Industrials.

We do the review every week, and in this Chart of the Week, I'll share it.

This Wednesday - Your Simple Guide to Trends and Reversals - Click Here

The Master Trader top-down method of stock market analysis is a comprehensive approach that starts with a Techno-Fundamental perspective and narrows to individual stocks.

Master Trader uses a Top-Down method to educate students through courses and letter memberships

The Advisory Swing and Options Trader Letter overviews the broader markets, sectors, internal market gauges, and a bias for the next week. And continuing education in Master Trader Technical Strategies.

There will be new swing and options trades for the week and a video of open trades each week.

Below is the review of the Dow Jones Industrials from the January 10th, 2025 Advisory Swing Letter.

Above is the Dow Jones Industrial Average chart we review for monthly MTS education and information.

Last week’s letter said, “The Pivot Low (PL) at 44,000 (a whole number) should provide an initial stall point where buyers will emerge.”

Buyers emerged there and broke below it, but after the news of the tariff reprieve, prices advanced sharply, ending Monday with a Range Expansion Bottoming Tail.

The advance early in the week to the area of major resistance (MR) and the bearish -180 -WRB was an obvious technical area for sellers to emerge.

The initial reversal on Thursday was relatively mild, but the selling was relentless when additional tariff news came on Friday.

The daily timeframe has formed a classic M-Top. The pattern forms after a higher momentum move, which creates a Void below that occurred in January, followed by a reversal, a shallow retracement, and a retest of the reversal and turn lower.

We anticipate lower prices based on this pattern in Friday’s -WRB.

Master Trader Tip: Emotionally, after such erratic price action, it is normal to become weary and difficult to ignore the possibility of another whipsaw.