The following is Stock Market Technical Analysis for the Dow Jones ( DJIA ) for 12/1/08
Dow Jones Support & Resistance Levels - December 1, 2008
Resistance Levels: 8923.18, 9000, 9300
Support Levels: 8672, 8500, 8330
The Dow Jones has gone up five straight days and has built a nice support level at 8500-8600. Monday, Dec 1st will be a crucial day as the volume will come back into the market. I still think we will test 8923 and if we close above this level we can test the 50 day moving average which stands at 9244. Keep an eye on Fridays low of 8672. If 8672 is broken with volume, this will be your first sign that the rally is starting to fizzle out. Next key support that will need to hold would be 8500. There is major support at 8500 and if we close below that the sellers will come back in droves. You would probably get a retest of 8000. Bottom Line: I am still bullish here unless 8672 is broken, in that case you could see the majority of stocks start to give back their recent gains.
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