Dow 30 Apr 09 to Apr 13 Outlook

Recap
As mentioned last week, Dow is in breakout mode and that failing to break out of this range at one extreme will simply follow the STOPD principle to tag the other end. Dow tested year high above Y+1 and failed to go higher, leading to immediate selloff back down to the other end below Y-1. Closed the week near Y-1.

Outlook
Early last week, I mentioned in real-time commentary that Dow formed an extremely bearish formation when it tagged the year high. The formation points to the potential of forming a complete double top. The double top has now formed. The question is whether the formation can lead to a break of the DT neckline with a clean slide down to DT target of below 12800 area.

Once this daily level correction is completed, probably within a week or 2, I expect a run to retest the year high.