A rash of bearish divergences warns of heightened selling pressure across a number of markets. Fund managers are also dressing up their balance sheets for the quarter end. Expect prices to hold until June 30th. Then all bets are off .............Dow Jones Industrial Average
The Dow is consolidating in a narrow range between 8600 and 8900, with declining volume. This normally signals continuation, but if we examine the pattern closely we find a series of doji candles, with closing price artificially supported at 8800 — rather than oscillating healthily between the upper and lower borders. In the long term, expect strong resistance at 9000 — followed by a secondary correction to test primary support at 6500. Breakout above 9000 is unlikely, but would offer a weak reversal signal — to a primary up-trend.
The Dow is consolidating in a narrow range between 8600 and 8900, with declining volume. This normally signals continuation, but if we examine the pattern closely we find a series of doji candles, with closing price artificially supported at 8800 — rather than oscillating healthily between the upper and lower borders. In the long term, expect strong resistance at 9000 — followed by a secondary correction to test primary support at 6500. Breakout above 9000 is unlikely, but would offer a weak reversal signal — to a primary up-trend.
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