Dow-30 closed just below the confluence of the 10- and the 20-day SMA on Monday. The index has been having its difficulties since hitting an all-time high on September 19. Practically the index has made no price progress in the last 3 months, consolidating around the 17K area. Monday proved one more time that buyers emerge and “buy the dip” when the index breaks down below 17K. There is good support @ 16.900 and resistance @ 17.150, 17.200 and 17.350. My gut tells me that DJIA-30 will break up in a conclusive way soon, even though the MACD is on sell mode now.
Dow Jones Industrial, daily chart:
Chart courtesy of StockCharts.com. http://stockcharts.com
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