DJIA: See Why October 1 Drop Was in the Cards (Plus, What’s Next…)
DJIA: Watch THIS Trendline for the Next Move
by Editorial Staff
Updated: October 02, 2019
You've seen those days -- or even weeks and months -- when an endless stream of "bad news" fails to sour the market's bullish mood.
You've also seen days when even a seemingly minor news report appears to send prices into a big rally or tailspin.
How can the market be so "illogical"?
The reason for this lack of rational behavior is market psychology.
When it's in a bullish mode, it's "primed" to "brush off bad news." When psychology changes to bearish, the market takes "bad news" pretty hard.
We believe that's exactly what happened on October 1.
See for yourself when you examine these two DJIA charts from our U.S. Short Term Update:
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