September Effect
Same chart but updated this morning. As seen, Dow has proven me wrong. The support I perceived to be strong has broken. Since last week, Dow has been ignoring positive news and data. This is the usual sign of market weakness!
Next support levels for Dow are 9,150 and 8,900 as marked in the chart. When we speak about supports. It doesn't mean prices MUST reach those levels. It simply means those are the areas where enough buying interest are identified. If reached, should prevent it from dropping further. But market can u-turn before those levels so one shouldn't be taking these levels as absolute and keep waiting there.
In Technical Analysis, there is this thing call calendar effect ties to cycle. September is typically the worst performing month while November / December are the best months. May be it is time to take a break and come back by end October!
Next support levels for Dow are 9,150 and 8,900 as marked in the chart. When we speak about supports. It doesn't mean prices MUST reach those levels. It simply means those are the areas where enough buying interest are identified. If reached, should prevent it from dropping further. But market can u-turn before those levels so one shouldn't be taking these levels as absolute and keep waiting there.
In Technical Analysis, there is this thing call calendar effect ties to cycle. September is typically the worst performing month while November / December are the best months. May be it is time to take a break and come back by end October!
Labels: Market Direction
posted by Market Wizards @ September 02, 2009
Comments: 1
