Looking at the 6 month chart for the DJIA, it looks like the market is at the beginning of a downtrend, the 10 and 200 day moving average is well over the price adding to downward pressure, however it looks like their might be a small pop upwards as the price hits the 50-day moving average, but after that my guess is that the downward trend will continue bringing the Dow Jones down to 10,000 and if it breaks past that down to 9,600 again. Also looking at the MACD it looks like a downward indicator as well ( please read my disclaimer). I have been wrong before so do your own due deligence, this is just my read on the market.
From July to August the DJIA ran up from 9,600 to 10,600 that is 1000 points in a month…a huge run up and it may be time for a breather. Knowing when this market will tank is the $65,000 question. If I were to guess a repeat of history…October is always a bad month, so maybe the final blow to take the DJIA down to 10,000 might be in October. For now I am out on the sidelines just watching.
Please read disclaimer.
Das Brain
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