Monday, October 4, 2010


A correction can be either in Price or in Time. Last week the markets took a break and went sideways. The 10875 level on the Dow Jones has been strong resistance, as per the chart above showed it would be. Is the market running out of steam or just taking a break to let the 20dma(yellow line @10650) catch up? Or does the market drop down to the 20dma and open gap at 10666? Until we get a strong reversal/sell signal, keep buying the opening dips. This week, look for resistance at 10942 and then at 11056. Support this week comes in at 10650 and then at 10500.