Dow Jones (12302)
In the previous review (12609), we had stated, “intermediate trend is bullish, stop 12164. Once the Dow clears the strong resistance of 12815-841, expect a good rally may be up to 13225; however the rise will not be fast but slow and steady amid with corrections in between”.
Since last review, the Dow has corrected with more than 300 points fall. However, it is still above our stop of 12164. Despite of a strong negative sentiments, it has manage to trade well above 11500 (Jan low) for the last 2 and half months. We expect the Dow to move in a sideways faze, unless and until there is a close above 12841. Till such time, it will continue to move 4 days up & 3 days down, creating confused environment. However, once it closes below 12164, the things will became much more difficult for the bulls to come back and control the show. Before that, a close below 12280 will be the first indication of weakness.
