Monthly Archives: November 2008

After the false break-down we have seen a rally and are once again approaching minor resistance level at 9000. A move through this level would signal a move approaching 10,000. While it could be because of the holiday this week, we did see diminishing volume, signaling the rally may be running out of steam. A…

Friday saw strong volume to the upside and a move back above the old support region of 7900-8000. This could signal a failed breakout to the downside. A move back down below 7500 would signal the move to 6000. If the DJIA moves back up, resistance is at 8500, 9000 and 9700. If we do…

Thursday saw a definative break to the downside in the DJIA. This move lower confirmed by the other indexes. The break downwards to nearly 7,500 means that the move to 6,000 is very likely. This is calculated by taking the width of the range prior to the breakout (approximately 2,000 points) minus the breakout price…

Wednesday marked a close inside the danger zone (below 8,000) of the DJIA. It does not mean we are due for another leg lower, although there are signals we could be in for that. An open below 8,000 on Thursday shows real weakness and if we see a close below 7,900 it is likley that…

While some large moves have occured, the DJIA has been unable to break out of the range between 7,900 and 10,000. Thursday saw a large up day with lows that reached our support zone. The upward price move was on large volume off a major support level, which is generally bullish, but there are a…

The markets inability to open and remain above 9 500 in early trading Wednesday was a major red flag that the breakout was false. False signals, or failed breakouts are often the best trades for both short and long term traders. The breakout was an opportunity to sell at better prices than we have seen…

The Dow Jones is hovering at the 9400-9500 resistance level. Volatility was lower on Friday and Monday, but that volatility could come back with election results. A close above 9500 would signal a move to 10 000. Volume on average has been declining since the Oct 10 peak. This is generally not a good sign…