Goldman Sachs – Bullish invalidation below 221 levels

Positive RSI divergence + bullish symmetrical triangle breakout signals potential for rally to 245-250 levels. The second quarter revenue has failed to meet expectations…EPS adjusted came-in at $3.95 vs. $3.51 expected.

Better-than-expected EPS is good news. Stay on the long side as long as the prices stay above 221 levels.

Daily chart



Indecision written all over Dow Jones chart

Weekly chart – Multiple candles with long upper/lower shadows signals indecision at record highs. The rising trend line coming from Feb 2016 low & June 2016 low is seen offering support at 21,310-21,300 levels. If breached, it would signal the index has topped out at least for the short-term.

However, don’t bet on the short side if the index breaches the rising trend line via sideways action…

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