Dow Jones Industrial Average bounced back hugely with more than 11%. It reversed the dramatic slide in the past weeks, but the downtrend line is overhead right now. It would take some time to work it out the resistance or another drop is more likely after hitting the downtrend line.
In 2006, RUT performed the best followed by INDU and S&P 500. QQQQ recovered the 10% loss from the mid-year and ended up more than 5%.
Both QQQQ and RUT are in the overhead resistence levels, only INDU and S&P 500 broke out. INDU is at all-time high and S&P 500 is about 100 points away from its all-time high.
The long doji indicated that market didn’t make up mind yet on where to go next. We need some push to break the overhead resistence.
All major indexes are back at the SMA 200 line. Judging from the overhead downtrend lines and SMA 200, we shall see some pullback unless the bulls take charge from here.
It looks like every bounce has met with selling, so the SMA 20 becomes the overhead resistence for a while. I plan to reduce 1/3 position if INDU reaches 10350.
QQQQ looks worse.