Will The Dow Continue To Fall This Week?

My take is that it's drop is almost, if not already, done. Remember the weekly 30MA line that I have been talking about for weeks? Last week's drop of 585.61 points has brough the Dow very close to its weekly 30MA line and ready for a rebound. This is also supported by a huge surge in the VIX and the Dow touching the 13260 short term support level while it's short term stochastics entered overbought region. All indications seems to support a rebound at this level. However, as we all can see, the weekly 30MA level is somewhere around the 13000 level... does it mean that the Dow needs to visit 13000 in order to rebound? Yes and No. The Dow can start to trade sideways for a few days in order for the weeklyu 30MA to catch up before staging a rebound or, yes, it could just go straight down to 13000 before rebounding. Both scenarios warrant a hold if you are long on the market and a hold if you have not entered yet. Traders should see a definite rebound before entering.


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