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Dow Finds Support at 200-Day SMA
The Dow’s direction remains uncertain following consecutive days of extreme volatility. In the current environment technical levels can lose their predictive power and must be taken in the context of the broader trends. The bounce from 10,000 validates the level as a formidable support level and if bearish momentum continues, then we would look for the psychological barrier to be tested again.... [Read more]
Dow Could See Losses Slowed By Trend Line Support
The Dow continues to stumble after failing to break above resistance at 11,240-61.8% Fibo of 14,167-6,470; the technical level is near pre-Lehman levels which may require further evidence of a sustainable recovery before an ultimate break above. A break below a short-term trend line has left longer-term support as the next barrier. A break below the level opens the door or a test of 10,000. The... [Read more]
Dow Turned Away By Fibo Resistance
The Dow stumbled after failing to break above resistance at 11,240-61.8% Fibo of 14,167-6,470; the technical level is near pre-Lehman levels which may require further evidence of a sustainable recovery before an ultimate break above. . A break below the rising support line has now opened the door for an extended move lower. The S&P 500 has turned lower before testing major resistance at 1,228-61.8%... [Read more]
Dow and S&P Facing Formidable Golden Ratio
Testing support from a steep channel, a drop below would suggest that an important top is in place at 10730. The next level of support is 9679, then 8878. The level that produced the January top has been significant in recent years (2004-2006), which increases the likelihood that a more important is in place. Short-Term Technical Outlook The Dow is looking to re-test resistance at 11,240-61.8%... [Read more]
Dow Marches Higher Takes Aim At Pre-Lehman Levels
Short-Term Technical Outlook The Dow appears poised to test resistance at 11,240-61.8% Fibo of 14,167-6,470, the technical level is near pre-Lehman levels which is where we may see the current rally stall. However, we have started to see consolidation ahead of psychological resistance at 11,000 which could also be a turning point. The S&P 500 like the Dow is on track to test major resistance... [Read more]
NASDAQ Looks To Extend Gains With Little Ressitance Ahead
The Dow gains have been slowed by resistance at 10,586- 61.8% Fibo extension of 13,136-6,460. The technical level could prove formidable considering it is the golden ratio of a major decline. Downside risk are to 10,400 where we find trendline support, a break above exposes 10,750 followed by 11,000. The S&P 500 like the Dow has broke from its short-term wedge but is facing resistance at 1,144-61.8%... [Read more]
Fibo Resistance May Limit Dow’s Gains
Testing support from a steep channel, a drop below would suggest that an important top is in place at 10730. The next level of support is 9679, then 8878. The level that produced the January top has been significant in recent years (2004-2006), which increases the likelihood that a more important is in place. The Dow broke from its short-term triangle but found resistance at 10,586- 61.8% Fibo... [Read more]
Dow Triangle Signals Potential Breakout
Recent Dow price action has developed a potential triangle formation which could signal the potential for a breakout. The blue chip index appears to have breached the upper bound signaling a stronger move to the upside. However, this is a weak interpretation of the pattern which leaves us without significant conviction on the pending move. Nevertheless, a clear upward trend has emerged leaving potential... [Read more]
Dow’s Hammer Candle Warns Of Reversal
Testing support from a steep channel, a drop below would suggest that an important top is in place at 10730. The next level of support is 9679, then 8878. The level that produced the January top has been significant in recent years (2004-2006), which increases the likelihood that a more important is in place. The Dow briefly broke below 10,000 to a low of 9,835 before retracing and closing back... [Read more]
Dow Threatens 10,000 Exposing Downside Risks
Testing support from a steep channel, a drop below would suggest that an important top is in place at 10730. The next level of support is 9679, then 8878. The level that produced the January top has been significant in recent years (2004-2006), which increases the likelihood that a more important is in place. The Dow is threatening 10,000 and given the sharp bearish decline from yesterday there... [Read more]
