Let's start with this P&F chart of our dear old Dow. Yesterday the Dow tested the 15,000 level and that level did not hold. Consequently, the Dow ended the session in the high 14,000s. Since the Dow hit its target projection of 15,000 and then sank further, the question is -- where is the Dow heading next? The rising trendline below comes in at 14,500 and this number should represent support. Of course, the Dow might have established its low where it is at 14,960.
I'm posting another chart of the Dow below, because I want to deal with the moving averages. The 50-day MA of the Dow comes in at 15,267, and as you can see, the Dow is well below it. The next important moving average is the 200-day MA, which stands at 14,374. This should offer important resistance on the downside. RSI is oversold, but MACD looks bearish. We ... Log in or subscribe to continue reading.
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