octradr

Will the DOW Stabilize?

INDEX:DOWI   DOW Industrials
72 3 0
There has been a lot of talk recently about the stability of the market with the major talking points being Korea, China, Oil             and terrorism. Hopefully I can help clarify how these issues impact the market.

THEY HAVE LITTLE IMPACT ON THE MARKET! There, I said it.

The big money in the market already know that every few years Korea acts up, China is still having growing pains, oil             will remain low for some time and terrorism will always be around. Sure, they may move their positions around for the short-term plays and capitalize on our fears, but they aren't going to do anything rash. So back to the main question, Will the DOW stabilize or continue down?

We can speculate all we want but what we actually know is this:

-The Dow is no longer trading in its upward channel
-Major support from the weekly chart is at 15855
-We are getting ready to test this support again
-Short-term resistance is at 16888

What this all means is that the market is definitely shaken but it is still holding in there. I wouldn't jump out unless you cannot afford to lose 10% but I wouldn't jump in quite yet either. We should get a clearer picture in a week or two. Protect your portfolio if it closes the WEEK below 15855. Until that happens it is just business as usual.

Feel free to leave a comment and/or ask me any questions

octradr
a year ago
Do you think it was happenstance that it poked at the weekly support? Of course not, but the key factor is that it held...so far. Remember, even though this is a daily chart the closeon the weekly is what matters most. 1/16/16
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octradr
a year ago
Broke support today but it may get back over support by the end of the week. Remember the support is a weekly support so no need to panic yet. 1/19
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octradr
a year ago
It closed out the week and the weekly support line held strong. It is still too early to say the downturn is over but it is looking more optimistic. I think the market will trade between 15450 and 16400 for a few days and then stabilize and head up if the 15450 level support holds. 1/23 after close
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