Near Term Dow Jones Index Industrial Trend

Stock market update :

Down jones industrial index stock chart

call it what you like bear bounce, dead cat bounce or bear rally, to me a rally is a rally

in any case, i still like to use my TA indicators to give me some idea about near term direction, so based on the latest dow jones charts :

1. there was a potential short signal on the few days after 20th april as my W% indicator turned bearish, indicating a potential to go short if DJ index closed below 7840. we can see that the few days after 20th april, DJ index did move below 7840 on intraday basis but continued to close above the 7840 support level, a sign that buyers are stronger than sellers.

2. and interestingly, the potential short signal disappeared on  24th april as my W% indicator turned bullish again indicating a potential to go long this time if DJ index closed above 8127…..this being the case on 29th april with DJ index closing at 8185.

in the mean time, parabolic SAR indicator remained positive throughout the past 2 weeks, favouring more upside in the near term as well.

in short, i would not be looking to go short just yet……….be patient and wait for the next signal to go short if you have missed the recent buy signal.

happy trading

rooney