For only the second time in 11 years, the Dow is above the top of the trading range at (3) in the chart below.
CLICK ON CHART TO ENLARGE
Game Plan….Be an owner of the Dow with a stop at 11,500
877-721-7217
[email protected]
For only the second time in 11 years, the Dow is above the top of the trading range at (3) in the chart below.
CLICK ON CHART TO ENLARGE
Game Plan….Be an owner of the Dow with a stop at 11,500
As I shared pre-market Monday morning, one day doesn’t make a trend and support had not been broken (see link below) The post Monday morning actually reflected that the 500 was on support, which would call for support to hold.
https://www.kimblechartingsolutions.com/2011/01/walk-away-due-to-egypt/
I am of the view that the market is entering a correction in the short term, but the primary support according to the Dow Theory should hold. Sentiment is very bullish and the market is overbought, but I think we can go a bit higher after the correction. We are in a cyclical bull, but a secular bear, so the run from March 09 lows is becoming quite mature. Therefore, I am not sure how much higher we will go, as majority of the gains are now gone!
I’m guessing this market nosedives fairly soon.
Chris
This may be your bravest call yet – with both the DOW and the S&P500 now reaching their psychological levels of 12,000 and 1,300 respectively it would seem more probable that investors will take some profits here – especially with any type of bad economic news in the days to come…