DOW critical backtest

The Dow Jones is also doing an important backtest today along with the precious metals complex. I’ve labeled the our most recent correction as a double bottom. Once we broke thru the top rail last week we headed straight for the old neckline that marked the top and led to the correction we are now in. On the chart below you can see how the old neckline came into play and stopped last weeks rally dead in its tracks. This was the most obvious spot for our backtest to begin from. This weeks action has taken us all the way back down to the breakout point where we are in the process of backtesting as we speak.

INDU daily backtest.