Price action over the last three trading days indicates algorithmic trading programs are reacting to external forces, such as the Federal Reserve continuing intervention of “enhanced” swap lines and bail out of leveraged financial institutions. The Fed’s intervention is expected to push the Dow upward over the next 10 trading days to the 52.5% retracement level noted on March 18, 2020 as leveraged financial institutions unwind their positions. Following this move upward, institutional algorithmic trading programs are expected to stop buying and continue selling in order to push the Dow down to 11,248.20 (+/- 2%). Watch for a rapid rise in store closings and bankruptcies.
Intermarket structural analysis research