Wipe Out
Well the markets nearly wiped out yesterday’s gains! Today’s DIA (the DIA is the ETF for the Dow Jones) chart formed a hefty bearish engulfing candle signaling a possible end to the two day uptrend. The market gapped up this morning into the 50-day exponential moving average (EMA) as well as the downtrend line starting from last December. Today’s high also represented a 38.2% retracement from the December downtrend. Funny how things come together like that. With today’s close we’re back below the 10-day exponential moving average and a high probability of retesting and breaking the January lows. A break above today’s high and 3-month downtrend would signal an end to the decline and a re-test of the 127 – 129 area.

Filed Under: Market Overview







