The Dow chart shows how well the channel support has stopped the wave and the test of the resistance is due within a few weeks. Mandatory is the test of the 50 day MA at 7750 but I rather think that 8250 is a target within 4 weeks. No one is in this market so far as mostly we have seen short covering so far. To turn into a real sucker rally the market needs to suck in longs and that happens rather close to the highs. The DOW has not taken out the Nov low so far but crucial is that the SPX did so and the NDX turned even above creating a positive intermarket divergence. Keep buying weakness early next week.
Friday, March 13, 2009
DOW tech update - market update
The Dow chart shows how well the channel support has stopped the wave and the test of the resistance is due within a few weeks. Mandatory is the test of the 50 day MA at 7750 but I rather think that 8250 is a target within 4 weeks. No one is in this market so far as mostly we have seen short covering so far. To turn into a real sucker rally the market needs to suck in longs and that happens rather close to the highs. The DOW has not taken out the Nov low so far but crucial is that the SPX did so and the NDX turned even above creating a positive intermarket divergence. Keep buying weakness early next week.
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