DOW UPDATE: Today is the first trading day of last six that we have broken out of this tight band DOW 11,050 and DOW 10,880 that MITA established some time ago. Further, if we consider November 22 a one day false break reading as it closed at DOW 11,089 we then have nine trading days in a row (discard 11/22)between this tight band.
You can make an easy case that we have just built in a huge ceiling of overhead resistance and major "distribution of shares" going on here. (The Bullish case is this is the base for the launch)
And given the configuration in the breakdown of UTIL and BKX lately, tomorrows trading action if we get this second close below DOW 10,880 with broad market selling participation and continued downdraft in BKX and UTIL after one day gains will weigh heavy on this market that is quite fatigued.
Now you know why tomorrow's action is extremely important.
On the DOW, if selling commences in earnest, new support is DOW 10,720. Below that, DOW 10,580 is major support; as it is the lower trading band of DOW 10,580 - DOW 10,650 that we were previously locked into and this held. It is also above the 50 and 200 day MA of DOW 10,563 and DOW 10,571 respectively. If this level is tested and held, it could be the base of the next launching pad for the market higher, if it is going to materialize. Below DOW 10,550 -- look out below and Katie bar the door.
I am still looking for this DOW 9,500 test between now and year-end if supports break.
Best Regards, J.T. |
