DJIA Chart Hits Resistance at 200 Day Moving Average

I charted the Dow Jones Industrial Average ($DJIA, $INDU, $DJI) on Friday, May 28, 2010, after it finished the week at 10,136.63.

3 thoughts on “DJIA Chart Hits Resistance at 200 Day Moving Average”

Brian J. Lofstrom says:

May 29, 2010 at 5:54 pm

Alex,

Enjoyed reading your post. You are 100% correct to be watching/concerned with the 200 dma. I also follow the 20 day and 10 day averages for any tell. Keep up the good work and enjoy your weekend.

Brian
jon says:

May 31, 2010 at 5:15 am

too bad these crossovers lag too much, only AFTER the 6 may flash crash did the crossover happen. Far too late!
Alex Fotopoulos says:

June 1, 2010 at 8:10 am

@ Brian, Thanks!

@ Jon, I agree moving averages are typically lagging indicators, but on this one I still think investors could’ve saved money by exiting around Dow 10,500, if not higher, a couple of days after the crossover. The damage still isn’t done based on how the futures look this morning (6/1). As I mentioned above, this doesn’t pick an exact top or bottom as an exit or entry point, but can be beneficial for longer periods.

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