Let’s see, the DOW didn’t do any dramatic thing. Down 65 points. The volume is decreasing. A previous down line was broken on 8th of December and the candles has been above that line. A new trend line is holding. The DOW is between 50MA and 20MA. It has been bouncing off the 50MA for a while now. And it has stayed above 20MA for a good 6 days. Could this mean a possible reversal? Or a consolidation before falling below. If it move down, it would probably easily go around 8380 line and stay. If it breaks more, it might go to 8180. But more down move doens’t seem very likely. It might go up a little, then make a down leg.
With the options expiring this week, it becomes very important to know and understand and predict correctly which way the DOW will move. Some moves might be over amplified. For example, today’s end of day spike was very noticeable and inexplicable. No news around the time. I looked online to see if there was some announcement but nothing.
It might continue down tomorrow, move up Wednesday and then down the rest of the week. That’s a wild guess and anybody who has monitored the market long enough knows there is simply no way to predict the moves. The best we can do it is:
- To be ready for the move.
- To recognize it.
- To use the short term trend and make money.
- To have funds available to play.
And today’s market recap.
