Dow Jones Industrial Average
The current level where DJIA has traded is around Fibonacci 50% retracement between Oct 10, 2007 high and March 10, 2009 low. As seen from the chart, there is a bearish divergence spotted in RSI from Aug ~ Nov. Both observations combined send us a warning signal that DJIA may be facing some head wind.
According to the text book, November/December are strong months for the stock market. I don't know how true it is in this case. A break above the current level will see 11,300 on the cards. Conversely, a break below may destroy the up trendline and lead us to 9.400.
According to the text book, November/December are strong months for the stock market. I don't know how true it is in this case. A break above the current level will see 11,300 on the cards. Conversely, a break below may destroy the up trendline and lead us to 9.400.
Labels: Market Direction
posted by Market Wizards @ November 24, 2009
Comments: 0
