Dow Jones Industrials Retreated

It’s down more than 180 points. If the current uptrend line is broken, the first support is at 8000-8100 level, which could become a good base to build some long positions if the worst is over. Let’s watch closely as overall it’s oversold at this point. The V shape bounce needs some time to consolidate even we’re entering a new uptrend.

The next support is 7500, which is previous low before this last leg down.

Melting down …

The melt down continues. We have broken 9000 level. Looking back 10 years, the support level is around 7500.

Dow Jones Industrial Average is at oversold condition, but with current credit crisis still spreading and running its course, any technical bounce is possible but would not last long.

Unless you have significant cash positions, wait in sideline. Cash is king in this juncture.

INDU

The blue chips have slowed its decline. It closed slightly lower although it was in the positive most of day. As in the support area, it may bounce back anytime.