Dow Tanked 140 Heading Into Sept
End of the third quarter is a bearish time of the year, with many major crashes (1929, 1987) occuring in October. We are likely to see further consolidation in September followed by a breach of support. The breach, however, may either resolve into a primary down-trend or rally sharply to complete a bear trap. All we can do is remain vigilant and stick to objective signals.
Dow Jones Industrial Average
The Dow found support at 10000 and rallied sharply on Friday but then again reversed 140 points Monday. Expect another test of resistance & support at 10500 and 10000 respectively. Reversal below the former primary support level at 9900 would indicate a primary down-swing, with a target of 9000*.
Twiggs Money Flow (21-day) respect of the zero line would be a positive sign suggesting minimal support for a new up-trend.