News can move markets short term - but generally speaking unless it's a bolt from the blue (KCTM, Lehman etc) the charts can help to navigate the turbulent waters, keep an eye on resistance and support.
The chart below shows the DOW daily and a BULLISH set up from an Elliott Wave perspective.
I'm no expert but I know that an impulse is 6 waves which is then followed by a 3 wave corrective. This is the simple explanation as waves can sub-divide.
Bullish: we have finished wave 3 and the recent fall has been a correction i.e. wave 4 and now we are in the final wave 5 up. The rally from the lows may be a wave 1 and we are now in wave 2 down..wave 2 down can be quite deep - it will suck in the bears thinking this is the start fo a new bear market (if it break the recent low - it MAY BE).
If we hold then we should have a good rally which will eventually make a new all time high.
Be nimble this week, don't get married to a view or position. It will be volatile - and could offer some good opportunities if we get large moves up or down
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