Dow Jones Industrial Average Is Walking Out Its Downtrend

It closed up today and the week so it’s following through the big shoot up the other day. As we can see that on the daily chart, it’s in short-term over bought condition now. It’s slowly walking out the downtrend line, but we should be cautious as the volume was not confirming.

If you have significant equity positions in your portfolio, any rally into 9,500-10,000 zone can be your opportunity to lighten up and preserve your capital during this bear market.

Pullback

Dow Jones Industrial pulled back a little and closed just a hair line below 11,000. The volume was slightly higher than average. If it holds up at 11,000, it’s more likely we will see some movement on the upside in the comming days and weeks. However, if the 11,000 does not hold up, we expect to see it at the support level 10,700.