As eyes turn to America, the economic barometer for the world, it’s make or break time for the DOW as it inches closer to the 15693 –a level which marks the top of an unbroken six month long range. Oh, and it's also a level which represents an all time high! Today’s daily bar has closed as a seller bar. Not quite the train track reversal bar as hopes, but proof that sellers are coming into the market.
So where does this leave the FTSE? Well, it’s closed as a high test bar this afternoon. While Europe’s open tomorrow will help define America’s tomorrow afternoon, the fact that the DOW closed as a seller bar at 9pm (GMT) confirmed that bears are sniffing around. As the FTSE has closed shy of its highest point since 2007, we feel that the reward/risk is sufficient for us to take the break of the low and trail it for every 2 seller bars.
If you would like further information on how to profit from multi-year highs, check out the article: "How to Profit from Multi-Year Highs".