After the recent run up, the Dow has been rangebound. This present consolidation represents a way for the market to catch its breate and reload afte rthe big move since the May bottom.
While I’d expect a little retracement and or back anbd filling, I suspect too many other people are hoping for that to happen. Therefore, wait until this range is resolved in either direction before putting too much money to work.
Chart of the Week: Dow Jones Trading Range
click for larger chart
I plan to buy the breakout above 10,610 on a closing basis or if we drop below 10,400, then find an appropriate retracement (Fibonacci?)
I am watching the other major indices — Nasdaq and SPX — for confirmation. Its also worthwhile to keep an eye on the Dow Transports, given yesterday’s Baltic Dry Freight Index.
Quote of the Day
past cannot be changed. The future is
yet in your power." ~ Mary Pickford