DJIA could not make any real price progress on Tuesday even though it is quite “oversold” in the short term. The index could not hold on to its morning gains and closed pretty much unchanged on the day. Essentially the market is trading at its August low level, about 300 points below the crucial 200-day SMA. There is no technical indication of a reversal yet and the market’s target on the downside is the April low @ 16.000. Resistance could be found in the 16.500/16.700 area.
Dow Jones Industrial, daily chart:
Chart courtesy of Stockcharts.com. http://stockcharts.com
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