I go back to talking about the Dow Jones after several months of away from my last report. The close of Friday at 10,325 points is exactly the low level indicated by the downtrend channel that has driven the index from the maximum at 14,164 points (9 October 2007), to the Minimum of yesterday (4 October 2008).
The chart is very easy and I think that it is unnecessary to add other words. At this point everything is ready to try a rebound of a good intensity and duration. Conversely, the break-out (down) of this very important value of support, it would open the way for another sell-off with target below 10,000 points.
In the event of a rebound, logically, for a trader on line is preferable to trade stocks that technically offer the best guarantees. Of course, in this situation, I prefer to operate on financial securities, because this is a credit and financial crunch! But among the 30 titles of the Index, they also are many titles that could be ready to break out (upside) theyr bearish channel ... and that means that they are ready to offer a bull signal.
I would remind you that ... The Dow Jones Industrial Average is the best-known index of the New York Stock Exchange. The Dow Jones was designed by Charles Dow, one of the fathers of the technical analysis and the founder of the famous Wall Street Journal. The value of this index is calculated by weighing the price of the 30 major titles of Wall Street.
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