Dow Jones Technical Analysis 8/20/08 - Dow Jones Industrial Average Analysis August 20th, 2008

Yesterday ( 8/19 ) the DOW broke a key support of 11,400 on a closing basis. We will have to see what happens today ( 8/20 ). 11,400 on the DOW held several weeks ago and now has been violated. Look at the Dow Chart , It seems as though the next support levels are 11,200 and 11,125.

A break below these levels and we could go back to test the July 15th, 2008 lows of 10,827 on the Dow. Keep an eye on resistance levels of 11,698 and 11,867. If we close above these levels it will be very bullish.

For now you have to buy the dips and sell the rips....as we are still deep bear market. When we close above that 11,867 you might not want to sell the rips anymore but add on the dips. Closing above 11,867 level would be a nice trend reversal. and could be a signal that the July 15th lows are indeed the bottom.