Sunday, July 19, 2009

Dow at resistance again?

Last week I wrote, I was looking for the market to trade between 8000-8500. I was wrong. The market traded from 8100 to 8700. Last week, the markets rallied off the 150 day moving average(at 8100), and brought us back up to the 200 day moving average(white line @8700). This is where the market ran into resistance last month. Will it be resistance again, and we pullback to 8300? or do we breakout to new highs for the year? I am looking for wild price swings in the next 2 weeks, as the planets and a solar eclipse will rule traders/investors emotions.The ancient Chinese text, Records of the Grand Historian, written more than 2,000 years ago, describes eclipses as indicators of change.