Dow Corrects to 30MA as Expected...
Without any surprise, the Dow yielded under more profit taking today closing down by 104 points at 9867 points.
Like a tame little baby, the Dow did exactly as I expected it to, correcting down to its daily 30MA line. The 30MA is an extremely important short term support for the Dow, breaking which, it will test its intermediate support which is its 50MA. With the 50MA so close behind and the market being far from short term oversold, testing it seems inevitable. As strong a psychological resistance level as the 10,000 points ought to be, we should see the Dow go into a deep short term oversold condition before it musters any strength to challenge the 10,000 points level again. But take heed, challenge and break it the Dow will, its just a matter of time.
For now, the Dow remains in a short term neutral trend within an intermediate and primary bull trend.
Like a tame little baby, the Dow did exactly as I expected it to, correcting down to its daily 30MA line. The 30MA is an extremely important short term support for the Dow, breaking which, it will test its intermediate support which is its 50MA. With the 50MA so close behind and the market being far from short term oversold, testing it seems inevitable. As strong a psychological resistance level as the 10,000 points ought to be, we should see the Dow go into a deep short term oversold condition before it musters any strength to challenge the 10,000 points level again. But take heed, challenge and break it the Dow will, its just a matter of time.
For now, the Dow remains in a short term neutral trend within an intermediate and primary bull trend.
Chart of Dow Made Using Telechart. Want Your Own Charting Software? Download FREE Now!
posted by Jason Ng at 8:53 PM
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