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I am fascinated by this chart of the Dow and its support line. 8300 seems to be an important support level, which is now becoming crucial resistance (or so I believe).
I am fascinated by the fight between bulls and bears with the Dow at current levels. It looks like the bears are succeeding in keeping the Dow below 8300. Will they continue to force the market down? Is 7800 the next support level. Time will tell, of course.
To find out more about my in depth view of the markets and my strategy just visit our website https://www.peterdag.com/ where you can review The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific money management needs. I will be happy to speak to your investment group on how the business cycle impacts investment strategies and the choice of asset classes. George Dagnino, PhD
Editor, since 1977
1 comment:
July 9, 2009 p.m.
It appears that the breaking of your major support level has so far had no effect on the S&P500 (or the DJI).
Why? Maybe the market has been consolidating for approx. three months in a "turning over" pattern that puts it back where it was three months ago. Now it may be ready to make a major move, UP or DOWN.
Maybe it is showing a bear trap when you look at the dip below your major support level. Note the dullness following the decline.
The continuing, declining volume since April is telling us something. Maybe we're in unchartered waters after the June highs. Maybe there are relatively fewer buyers and sellers for valid, fundamental reasons.
It is noted that your support level rose about 100 points between July 8 @ 10:28 a.m. and July 9, @10:40 a.m. from approx. 8,200 to approx. 8,300 on the S&P 500.
Respectfully, Russell Janson
Tampa
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