I was rather surprised at the market's strong reaction to the FED's rate hike yesterday and so I thought I'd do some more work on the technicals as they apply to the DOW futures. Here's what I came up with.
A very interesting scenario has developed in the DOW. The market's big rally yesterday took the DOW futures right up to key resistance at the 100-day MA (11,268). If I happened to be bearish on the long-term prospects for stocks I would consider this to be a perfect opportunity to SELL the DOW futures using a very tight stop above the 50-day MA of 11,289 (on a closing basis only). If the market clears that level (11,289) then I'd have to reconsider my position as this would be very bullish for the markets near-term prospects.
Enjoy your 4th of July holiday!
Dale F. Doelling
Chief Market Technician
Trends In Commodities
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