If the Dow breaks 8,000, we are screwed for the short term (in my opinion). Dow support at 8,000 is EXTREMELY important. Not only is it a proven level of support, it's a major psychological barrier for the market.
Take a look at the 60 day chart of the Dow Jones Industrial Average.As you can see, 8,000 has been tested twice already. On both occasions, the price action dipped just below 8,000 support, but quickly rebounded and rallied higher. That's normal,there's nothing to worry about as long as the price rebounds quickly intraday after dipping through the support level. Now, if we see a close below 8,000 then you may want to start worrying about your short term long positions.
Furthermore, 8,250 is a major support level in the Dow as well. Keep an eye on price action there if the Dow tests it again.
More importantly, watch very closely if the Dow tests 8,000 again.
0 comments:
Post a Comment