I posted on Tuesday, August 17th that the Dow Jones will drop to 10,000 points from 10,450 points then bounce a bit, and again head lower to the next support level 9,600. As you can see from trading the actions of August 26 and 27 that it is exactly how it is playing out.
On August 26th the DJIA went and closed below 10,000 and Friday August 27th it bounced above 10,1000 points. I think the Dow Jones Industrial Average index might see a little bit more upside, however it will be short lived and then it will drop again below 10,000 towards 9,600. This may take some time, however I might consider making a quick trade once it reaches 9,600 area, but ahead of that point I will be just observing.
The markets are volatile now, all indexes are below 50 and 100 day moving average and it is down right scary…so it is best to be extra cautious.
Please read my disclaimer.
Das Brain
Bookmark at:StumbleUpon | Digg | Del.icio.us | Dzone | Newsvine | Spurl | Simpy | Furl | Reddit | Yahoo! MyWeb
