Dow Jones ($DJI) Chart - July 3, 2008

The Dow Jones Industrial Average (ticker: $DJI) hasn’t recovered since I wrote about the trend line break two week ago. In fact a second break occurred on June 26th and now the old support level (floor) is acting as a ceiling as the downward trend continues.

The DJIA’s 10, 20, 50, 100 and even its 200 day moving averages are far above its current trading price. Each could act as a road block on the Dow’s way back higher, whenever that day comes. I’m not calling for a sustained rally any time soon although we’ll likely see some bull runs mixed in before we find some real footing.

Today’s my 37th birthday, so I’m cutting this post short to go do birthday stuff with my family.

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4 Comments

Comment by Investing real estate in the Dominican Republic

I think we have a ways to go yet. Looks as though the banks have made a rather large mistake and this correction is not over yet. Happy birthday
Comment by How to buy stocks online

I agree with the previous poster. I don’t really see things settling down until 2009. Europe has not really felt the pinch as yet.
Comment by day trading system

The way I see it, just like with the ES, all of the short upward rallies are simply the bears taking some profits on their huge short positions. Recession is on the horizon.
Comment by CreditCardBalanceTransfer

yea i think when 2009 comes around…things should pick back up.