Sunday, July 12, 2009
When the Dow open last Monday below the weekly P pivot(yellow line marked P), I knew it would be a down week and to look for support at the s1 or s2 pivot(white line marked s1 or s2). That's exactly where the Dow stopped going down last week..... on the weekly s2 pivot. This coming week the Dow's weekly P is at 8187. If we open below that, it probably will be another down week, and I will look for first support on s1 at 8046. If we open above the weekly P(8187), I will be looking for an up week and first resistance will be at the weekly r1 pivot at 8287. We have option expiration this Friday, so volatility will be high. I think we'll trade between 8000 and 8500 this coming week. If we break 8000, look for support around 7910(monthly s2 pivot).
Posted by Jeff York at 7:52 AM