Here's where the near-term market direction should become quite clear. With the DOW futures eclipsing the 100-day MA of 11258 (11275 intraday high) we now must wait and see how the market is able to finish. The last time the DOW closed above the 100-day MA was on July 6th. The market was only able to close above the MA one day before it fell over 500 points in the next 6 sessions. Do chart patterns repeat themselves? Very often they do. If the market closes above 11258 then Monday will be the day that should tell us whether the DOW continues on its merry way or it takes another nosedive. Stay tuned!
Dale F. Doelling
Chief Market Technician
Trends In Commodities
Sunday evening observation (9:05 PM EDT): The Dow futures broke through near-term resistance on Friday but was unable to maintain those levels and ended the day below the 100-day MA closing at 11254. With the market down 10 in the early going this could be a great time to SHORT the Dow or BUY PUTS on the DOW or other stock indexes. I'll update this blog on Monday morning after the market opens at 9:30 AM EDT.
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