DJIA Charts: 2 months of gains wiped out in 5 trad
Post# of 776
Posted On: 07/31/2014 7:06:29 PM
DJIA Charts: 2 months of gains wiped out in 5 trading days..........huge drop today.......the 200 DMA @ 16315.39 is the bounce target..........the DOW has tested the 200 day moving average twice in the last year on the daily chart & both times it held..........if the 200 DMA does gets tested and turns into resistance it will signal considerable downside risk.............checkout the volume on yesterday's move........avg. Volume, but big drop.........that's one positive for the Bulls........at least Thursday's drop wasn't on monster volume..........that would have been even worse.......not to say the downward snowball couldn't pick up volume on the way down........people are slow to react and historically late on the moves.....REMEMBER THE SAYING, WHEN THERE'S BLOOD IN THE STREETS YOU BUY............downside monster volume would signal bloody streets.........not quite there yet.......we'll see how the technicals look after the 200 DMA support level is tested...............I will be breaking down the Big Boards over the next few days........keep an EYE out for the latest updates.......
For tomorrow I'm predicting a green day, but I would not be a buyer for long term positions......instead it will probably better to wait until next week...........I think tomorrow will be green for a couple of reasons........the main reason being Fast Sto is @ 0 & RSI is @ 32.09..........Fast Sto is at extreme oversold levels & RSI is close to the 30 oversold level...........technical bounce players will see the market is temporarily oversold........also, today's candlestick is a Red Marubozu.........the sellers controlled the action from opening bell until closing bell..........the 317 point drop was extreme, but only on average volume.......closing at the low of day sets up the bounce.......more than likely, because of these factors the DOW will have a green day tomorrow........not expecting a big pop........it's going to be a Friday tomorrow heading into a weekend of great indecision..........if for some reason the DOW does have a red day tomorrow it will be a MAJOR bearish flag that should not be overlooked..........another red day following Fast Sto @ 0 is almost unheard of on the big boards unless there is some major crisis.........are we in the middle of a major crisis?.......I guess that is open to debate, but more than anything the market was overbought after a big run and was due for a breather...............the U.S. Is still the safest and best market in the world..........that has not changed..........$$$
http://stockcharts.com/h-sc/ui?s=$INDU&p=...8900193648
For tomorrow I'm predicting a green day, but I would not be a buyer for long term positions......instead it will probably better to wait until next week...........I think tomorrow will be green for a couple of reasons........the main reason being Fast Sto is @ 0 & RSI is @ 32.09..........Fast Sto is at extreme oversold levels & RSI is close to the 30 oversold level...........technical bounce players will see the market is temporarily oversold........also, today's candlestick is a Red Marubozu.........the sellers controlled the action from opening bell until closing bell..........the 317 point drop was extreme, but only on average volume.......closing at the low of day sets up the bounce.......more than likely, because of these factors the DOW will have a green day tomorrow........not expecting a big pop........it's going to be a Friday tomorrow heading into a weekend of great indecision..........if for some reason the DOW does have a red day tomorrow it will be a MAJOR bearish flag that should not be overlooked..........another red day following Fast Sto @ 0 is almost unheard of on the big boards unless there is some major crisis.........are we in the middle of a major crisis?.......I guess that is open to debate, but more than anything the market was overbought after a big run and was due for a breather...............the U.S. Is still the safest and best market in the world..........that has not changed..........$$$
http://stockcharts.com/h-sc/ui?s=$INDU&p=...8900193648
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