More Jitters...

Not surprising to see a small sideways day after such a strong drop and certainly not strange to see a short term rebound off from tomorrow onwards as the Dow reaches the strong 12800 support level. With more talks of a sour economy coming directly from the White House, it is hard to conjure any sense of optimism and my range bound expectation seems coming to be. I will be watching 2 critical levels, a breach of either level could spur a mid term reaction in that direction; 12800 and 13500 (coincidentally, the 13500 level is also the 30WMA level which I mentioned yesterday). Again, remember the 2 golden principles in technical analysis... Significance & Prudence.