Dow Jones Technical Chart with Twiggs Money Flow

By | May 25, 2009

Light volume on the Dow indicates a lack of buying support at the lower border of the recent consolidation. Bearish divergence on Twiggs Money Flow (21-Day) warns of reversal of the bear rally of recent months. Breakout below 8200 is expected, signaling a test of primary support at 6500. Reversal above 8600 is unlikely, but would test primary resistance at 9000. In the longer term, strong resistance is expected at 9000, with breakout not expected in the next 6 months. A correction that stops short of 6500, however, would signal a trend change if followed by penetration of 9000.

Leave a Reply