This is just a quick analysis of the DOW. All dashed lines are support with the rising support being the weakest. It is very common for the DOW to dip a few percent below these supports before rebounding. Let me know what you think.
We need a few more bars to go through before we can make any sort of real prediction about long term behavior. Wildly speculative intraday trading has resulted in high velocity whipsaw. These fluctuations do not accurately reflect the strength of the underlying assets.
Long term is still up and right now the market is in the bargain bin. Our underlying fear of losing money and possible trend reversal is what keeps us from taking advantage of this. That being said, the safe play is to wait for confirmation that the trend up is still in play. I would say that confirmation is when the 8 day EMA crosses the 15 on the daily. Once this occurs l would put my investments back into the market. 10/11
Just an update... Turned bullish on 10/27 with the EMA's crossing. It closed out that day at 16817. Now would be a good time to begin to get back into the market but not fully. Strong support is around 16400. 10/29 B4 close 16975