U.S. Stock Market (DOW) Short Call 7-17-2015: 1st target 300 points, 2nd 650 points

7/17/2015 - 9:20 am EST

* The call confirmation requires the following conditions which can occur today or next week, but need to trigger to make the call:

1) We do not break a prior day's high

2) If we do, only a bull trap would allow the signal to still be valid

3) For short trigger, we need to break below prior day's low

4) For trade confirmation / to add to position, we need to close below prior day's low to began the bear down

We pulled up to the expected resistance on the widening bear channel down on the daily chart. On an hourly chart, we have a bull channel within a major bear channel. The daily chart below shows the top line channel resistance and the move expectation:

 The 1 hour chart below has the conditional requirements for the call.

Targets:

1st target: Origination Point of up move, around 300 point profit, ~17,700

2nd target: Bottom of widening bear channel, around 650 point profit, below ~17,350

Stop:

Above prior days high to start. Recommended to go Risk-Free if sufficient leg down then trail the channel.