Tuesday, July 20, 2010

Short term sell sig negated

Last Friday's big down day told us the short term up trend(rally) has stopped, and we are now on a short term sell signal. Last week, the Dow Jones went up to the 200dma(white line) and failed. Now it has pulled back to the 20dma(yellow line). There is an open gap at approx. 10,020 that looks to be filled at todays open. This week, support comes in at 9700-9800 and resistance is at 10200-10300. We are getting close to the 2010 Bradley Model 80 year low reading on August 10th., so be defensive. It could get ugly!

UPDATE: The Dow jones filled the open gap today @10k and took off to the upside. Next closest open gap is at 10355 and the 200dma is @10400. Look for support @10100(20dma). The short term sell signal is now negated. Buy the dips(short term trade) as long as the 20dma holds @10100.