Today is Wednesday and the Dow finally did it, 10,341 and a full 50% retracement from the all time high’s.

The market quickly shot up on the open and pushed higher, saw a pullback and made another run for new highs. The price action was good today, with trades on both sides of the fence. The bears did not waste any time at having a hand in bringing this market back down. I am sure there has been a lot of people waiting on the sidelines for todays level to be hit.

That being said, it is going to be very interesting to see how the market handles this move up. I have a chart posted below of the Dow and it clearly shows resistance at todays high. It has hit that same trajectory resistance many times already and each time has backed off. That may or may not be the case this time. I alway say, trading is moving off of conditional situations. If this, then that. Well, I would say the “This” is, a breakout above the yellow resistance line and the that is, a follow through with the rest of the market coming up the rear.

Now since that has not happen yet, it sure would be different. Most people are expecting a pull back, I say, what if we don’t get one but get a break to the upside. Now would not that surprise most all of the analysts. I think, Yes.

I really don’t know myself this time, but I will not be as surprised as most, to see the Dow up 200 points plus some day next week, or this for that matter. I always say, you have to look both ways. If you just assume that it is going to back off, just like it has in the past, you could get burned. The odds say it does, but, the trend is up and the pessimism is up as well, which is really fuel for the bullish fire.

As I was saying above, if you don’t look both ways, you could get run over. Thats what my mom always told me, I think it is good advise.

I took a few trades after the New York lunch time and did good. Trading small but trading and getting my daily goal +++.  I am doing a lot of work on my website and it is taking a bit of time, I will soon be finished and a little more focused, but I am enjoying the process.

I will cut it short today, but have something interesting to write about tomorrow, I am sure. Until then,

Good trading !

http://www.screencast.com/t/YTY0NWU0NzI 

 

Related posts:

1. Dow Jones Industrial In Position for New Highs on Year
2. Major Index’s Currently at 62% Retracement Levels
3. Markets bounce off 50% Fib. retracement from 1982 low
4. Market Rally +400 on Dow Jones
5. Will Dow Jones Industrial support hold?

Tags: fibonacci retracement