Update: Triggered, LH LL - Bear Channel Forming: U.S. Stock Market (DOW) Short Call 7-17-2015

The break of prior day's low triggered the short call. Price structure is still intact as you can see from the 15 minute chart below. I highlighted the trend lines (top of bear channel) and Bull Trap bar. With bear channel formation beginning, we are in short to medium-term shorting territory here.

Being that we're at the top of the minor bear channel with the a lower high and lower low today compared to yesterday, I would look for FH1's (failed long signals) to short. We have historical posts about our FH1 and FL1 signals, but we plan on doing another post with details.

As mentioned in the earlier post, stop is above prior day's high, make sure to trail the channel swings once we print more prices. Targets hold at previously stated levels.

* If there is a BOT long out of here, this would become an FL1 with bias to long side and potential reversal of trade from short to long if the FL1 did occur. The short would be closed on the BOT by out stop management system and a long signal could trigger.