Sunday, May 23, 2010

Dow Jones Yearly R2 (YR2) to Yearly Pivot(YPP)

The Dow Jones Futures on the chart above, went from a high last month at the Yearly R2 Pivot, then down to the Yearly Pivot Point last Friday. Pivots show me where to look for market tops and bottoms. Support and Resistance! Now I am seeing a buy signal on the Yearly Pivot at 10040(purple line marked P). The Dow needs to close above 10040 or I will be wrong. I think we bounce back up to 10500 - 10800, and then another crash! We could rally into June 4th. If we break 10040 then next support comes in at 9622 below. Get use to BIG WILD PRICE SWING action. It's just getting started! It is going to be an ugly summer in the stock market. Make sure you have protection on ALL long positions or raise cash on rally's.