Welcome back, said the Dow.

Dow just welcomed me back last night. It closed green with 125 points. Just last night, I said, "Galit kami ni Dow dahil sinira nya bull flag ng EEI ko." It seems the Dow doesn't want to get on my bad side so lo and behold, it closed higher! (Haha!) I found a rather interesting intraday (5-minute chart) pattern on the Dow. 

See that? An inverse head and shoulder! Clear breakout during the last few minutes of trading. Just take note though, since this is an intraday pattern and not seen in the daily chart, it is not a very strong pattern. So, let's check the daily chart. Although the intraday inverse H&S is not seen, we have a clear bounce off its support. 

I believe these point to a possible rally in the next couple of trading days. Of course, these are very short-term analyses. We are still not out of the woods. We have yet to determine if this bounce that should occur soon is of the dead cat variety or if it is the continuation of the uptrend. Should these bullish signals we found on the intraday and daily charts fail, be scared! See the part I encircled in the first chart? That's a failed double bottom. We saw the Dow take a nose dive after this failed pattern. The inverse H&S is a bigger pattern so a bigger correction should ensue upon failure. Daily chart would suggest a break below support in this scenario.