DOW Backtest and Update:
Last Wednesday Sep 22 (MITA 675), I noted major support levels:
On the DOW:
...<The DOW 10,524 is obviously one trading day away from capitulation now and within striking distance of taking out DOW 10,410. This will lead to a quick hard sell-off which should initially carry down to the 10,200 area before any bounce materializes....
iqc.com
This was smack on the money as we breached 10,200 level twice on Friday (10,187 area)and then we bounced to close at DOW 10,279. Today (Monday) the market gaps up at the open and carries the DOW up to 10,402 intraday high only to fade into the bell and we close up 24 to 10,303. DOW 10,303 now sits right above its 200 day MA sits at 10,260.
DOW 10,410 is now resistance and DOW 10,200 is support. DOW will now have this imminent test and take-out of DOW 10,200 as early as tomorrow but no later than the end of this week which will take us to this 10,050 dire support level I mentioned in MITA 675 last Wednesday:
..<It (DOW) may or may not be short-lived within the day, but ultimately will lead us one way or the other to 10,050.>..
With the seasonal "quarterly window dress in play" later this week, 10,050 could be breached but nevertheless should find a short-term safety net of support as it becomes quite tricky where the DOW will find a bottom before that bounce comes back to play. More on this as it unfolds.
Best Regards, J.T. |
