As explained in my last post, the Dow has found support at the EMA on the 15 minute chart (far left) and the Lower Bollinger Band on the 3 minute chart. It remains to be seen if this will result in a resumption of the Dow uptrend, or a temporary consolidation, most likely to be followed by a downturn. If the bulls can't push prices substantially higher (than the previous high), then a downtrend is likely to result. My gut tells me that prices will most likely consolidate for a time and then move lower, but I am trying to be unbiased in this regard. That way, I can be open to whatever market forces are trying to tell me. Exciting stuff!Wednesday, June 4, 2008
Dow Bounces
As explained in my last post, the Dow has found support at the EMA on the 15 minute chart (far left) and the Lower Bollinger Band on the 3 minute chart. It remains to be seen if this will result in a resumption of the Dow uptrend, or a temporary consolidation, most likely to be followed by a downturn. If the bulls can't push prices substantially higher (than the previous high), then a downtrend is likely to result. My gut tells me that prices will most likely consolidate for a time and then move lower, but I am trying to be unbiased in this regard. That way, I can be open to whatever market forces are trying to tell me. Exciting stuff!
