So let’s see what the DOW has been doing. It’s been sort of going up and down which is somewhat usual. But it seems to be forming patterns breaking either to the upside or the downside. This is confusing for a regular technical analysis using trader. Not only that but it is confusing for the investors. Investors can’t decide if these are the best price or if it will get better. Traders can’t decide if it will go up or down. Without all of this, you’ll see uncertainty and restlessness in the markets. Which is the usual activity lately.
For the DOW, big support around 8300. Big resistance at 8900. Likely direction is down. Even tho, this is after the fact since we’ve had one more trading day since I did this analysis. And today’s action was lower. But this is the analysis that I had done on 19th.
Short term stochs diverging down. MACD still in higher highs mode while index is in same highs which is not higher highs. The RSI has been also flat in the highs. This is fairly confusing. Not a trade worthy environment. I will lay off until the next year.
I may monitor the markets and if I see something really interesting, I may invest or trade a little. But for the most part, I will wait until the new year.
