The Dow Jones closed at 11,543.55 on 8/29/08. It was a very low volume day and all of last week was very low on the volume due to the late summer months when most people go on vacation. The Dow opened just below 11,700 and sank all day.
Key Factors: McCain selecting Sarah Palin as the VP candidate, Dell Earnings, Hurricane Gustav and the impact it may have.
Dow Jones Technical Analysis:
The Dow has made a pretty nice base for itself around the 11,400 area over the past several weeks. Looking at the Dow Chart, we need to continue to hold the 10 day moving average on a closing basis which is currently at 11453. A close below this and more selling pressure will arrive. Technicians use this moving average to gauge overall market strength for the short term. Technicians use the 50 and 200 day moving averages for the long term.
Dow Support and Resistance: The Dow has support at 11,453 and 11,390. Resistance is 11715 and 11867. When we clear this you will not want to be caught short. A big move higher could follow for the Dow.
For the week of 9/2/08 - 9/05/08.....look for some bigger volume and watch these important levels described above. The volume will really come back 9/08/08 and beyond.
Saturday, August 30, 2008
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