DJIA Daily Technical Analysis 10 Sept 2011
The Dow closed sharply lower on Friday as increased concern over the viability of the global economy is weighing on the market. Today's low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near-term. Closes below Tuesday's low crossing at 10,932 would confirm that a short-term top has been posted while opening the door for a possible test of August's low crossing at 10,604 later this fall. If the Dow renews the rally off August's low, the 50% retracement level of the May-August decline crossing at 11,740 is the next upside target.
First resistance is the 50% retracement level of the May-August decline crossing at 11,740. Second resistance is the 62% retracement level of the May-August decline crossing at 12,008. First support is Tuesday's low crossing at 10,932.
Second support is the reaction low crossing at 10,801.
DJIA Weekly expected to further retrace i-line with the corrective Wave 2 and then rebound with a Wave 3 formation. This may take a few weekly candles.
HAPPY WEEKEND
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