$ DJIA – Dow Industrial Average (Last:17977)

Updated July 13, 7:15 p.m. EDT

Every Indoo rally during the last two months has gone nowhere, creating a bearish picture of descending highs and lows on the charts. If the short squeeze that got under way Sunday night is similarly destined for failure, we might expect it to top near the trendline shown. It comes in around 18094 today, with a downward slope of about 5 points per day. I’ve highlighted a similar trendline for the E-Mini S&Ps, but this one is much closer and could be hit today if there’s any follow-through to yesterday’s waft. You can use the target to get long or short, depending on how aggressively you trade. If you want to employ put or call options, I’d suggest interpolating with DIA, for which a comparable target lies (today) at around 180.70.

0713_Rick