Dow Industrials

Oh what fun...you can feel the "this won't go far...no need to sell" sentiment in this price action. I, of course, do not know how far it will drop, but the various cycles in play (or the one's I am measuring)suggest there is definitely the possibility of a cascade. I certainly would not want to be the one to confirm up front which one will stick a low. My trading 'set up' is based on the 100day cycle; this is shown in Chart 1 as the blue MMA (MyWave). It's half cycle displaced brother (100D.fld) is a slightly faster MA calculation but is based on half of the same bar count as the gold spine of MyWave. The larger and smaller fld s represent a ladder of sequential halves and doubles of the 100D fld in time, to create a storyboard to measure what happens when the Momentum Cluster in the sub-chart bottoms and tops. As MyWave is still in a bullish configuration, I am keen to see how close to the last low at 14453, when the cluster nested, price can get. Getting close will cause interaction with the fld s, providing more info. On Chart 2, we can see that there has not been a nested low on the 400 day MyWave since 12466 in November 2012. Given the negative divergence on the rsi and toppy momentum cluster, it is not unlikely that this next turn down on the 100D (Chart 1) catches a higher cycle. Anyhow, that is why I am justifying my short for now!