The following is Stock Market Technical Analysis for the Dow Jones ( DJIA ) for 12/2/08
Dow Jones Support & Resistance Levels - December 2, 2008
Resistance Levels: 8292, 8500
Support Levels: 8000, 7773
Today, the Dow Jones broke through all three support levels and closed back below the 10 day moving average. This is very bearish and shows us that last weeks rally was just a typical bear market rally. At some point tomorrow, i'd expect us to retest 8000 and we could get a bounce off this level given the declines today. If we close back below 8000 we will test 7773 and 7449. If we do get down this low, keep your eye on 7181. This was the 2002 low that we bounced off of before hitting highs in 2007. If we close below 7181, it could get really ugly. Holding 8000 will avoid all of this! On the upside, I'd get bullish on a close back over the 10 day moving average, currently at 8292.
Bottom Line: Waiting and Watching for these support and resistance levels to play out
Bottom Line: Waiting and Watching for these support and resistance levels to play out
There is major support in the 7181 area to the 7400 area for the Dow Jones. These levels were hit back in 1998 and also 2002. We bounced higher off of these levels both times.
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