Monday, November 15, 2010

Market Stalls - Uptrend Still In Tact

The Dow Jones Industrial looked like it was going to rocket through its April/May resistance and send us in blow-off mode of some sort. That was all put by the wayside as many traders, hedge funds, algo funds, and even the small investor decided to take profits in the profit zone - meaning, anytime you come to resistance/support zones, there will be profit taking and volatility.

Looking at the DJIA and it's attempted breakout - it has now had a 5-6 day stall/correction. If we notice the large candle that gave us a signal of breaking out, and then the retracement from that candle, all of the corrective prices within that candle range. This now means DJIA has a high probability of channeling in here, before making an attempt higher or testing the current uptrend support.

Its currently a traders market with a long bias!

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