The following is Technical Analysis for the Dow Jones for 12/9/08
Dow Jones Support & Resistance Levels - December 9, 2008
Resistance Levels: 9000, 9323, 9653
Support Levels: 8831, 8675, 8558, 8350
http://stockcharts.com - Chart
The Dow Jones broke through 8831, 8923, 9000, but failed to close above the 50 day moving average today. This is a level we haven't tested for awhile and this is where the real fight will begin. The Dow Jones has support at 8831, 8675, and the 10 day moving average at 8558. These are levels I will look to buy, especially pullbacks to the 10 day moving average. Keep in mind, we broke through two previous high points today ( 8831, 8923 ) and this is very bullish. However, we have bounced 1500 points in the past two weeks from the lows. If we get a nice year end rally, we could be looking at testing the Election High of 9653.95 but this is a level where i'd start to sell and will be doing so. Keep an eye on the 10 day moving average for a sign of a break down if we close under it. We have only closed under the 10 day moving average once in the past 11 trading session. If you get two straight days this will be your bearish sign.
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