DOW UPDATE: Friday's closing action was huge as we held above higher resistance level DOW 11,220 MITA established to close at this DOW 11,224.70.
The backtest MITA 1,832:
...<We may get a DOW bounce tomorrow. If we do, DOW 11,150 is new resistance, with higher level DOW 11,220...
DOW support is now this DOW 11,085 level which is right below 10 day MA of DOW 11,090.87. This DOW 11,085 should only come into play if wash-out develops. Higher solid support is DOW '11,150 and this should hold as long as bond yields stay at or below 6.19%.
I would only be concerned if DOW 11,020 is breached off of DOW 11,050 previous support we have mentioned in the past - a last stop gap.
DOW resistance is really DOW 11,310 and if we take this level the old high DOW 11,326 will be left in the dust as roadrunner beep beep bull will smell blood and fear of loss sets in and the fuel will be set to the fire for this updraft. DOW 11,390 first new upside virgin territory. DOW 11,550 is second virgin blue sky.. DOW 11,900 before Christmas if Tuesday CPI is benign.
Best Regards, J.T.
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