I charted the Dow Jones Industrial Average ($INDU, DJIA, $DJI) after the markets closed on Friday, 7/2/10, after it finished the week at 9,686.48.
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The chart doesn’t paint a longer term bullish view, but the short term might allow for a small pop. The upside is limited
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I charted the Dow Jones Industrial Average ($INDU, DJIA, $DJI) after the markets closed on Friday, 7/2/10, after it finished the week at 9,686.48.
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The chart doesn’t paint a longer term bullish view, but the short term might allow for a small pop. The upside is limited by the declining trend line of lower highs and the 50, 100 and 200 day moving averages. The downside is supported by a declining trend line of lower lows. Although both of these trend lines are declining it leaves a wide trading range for the Dow to move before hitting resistance again.
The overall path still seems to be aiming lower, especially with the impending 50/200 day moving average cross coming. Such a cross over of these moving averages is regarded as a bearish indicator. The 10/20 dma lines (not shown here) crossed on Thursday and also is a bearish signal. The only technical hope the Dow has for getting a pop higher comes from the lower trend line I mentioned, but it’s also still declining which takes some shine off of that hope. Williams %R is stuck in oversold where we know it can stay for weeks on end although touching the complete bottom line like it did last week does sometimes give it a little bounce.
Overall it doesn’t look positive for the Dow, but support is still holding on the only trend line I drew and could give us a relief rally, but not one I expect to last more beyond 500-700 points. That’s not saying that 5-7% wouldn’t be a nice ride to stay on for, but be wary of thinking it’ll have legs beyond that.
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