For our purposes there is only one chart that I am watching, and that is the chart of the Dow together with its 200-day moving average. I show that chart below. In a bull market the Dow tends to travel above its 200-day moving average -- except during those abbreviated periods when the Dow sinks into a correction.
At its recent high the Dow was hundreds of points above its 200-day MA. From there, the Dow sank into a much-needed correction. I find it significant that with talk of the Fed cutting back on QE, and with the US preparing to punish Assad in Syria (probably via bombs or drones), the Dow has refused to sink below its 200-day MA.
As long as this situation remains, I will take a constructive view towards the stock market. But wait, it's not that easy. We may find the market stalled within a trading range for ... Log in or subscribe to continue reading.
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