On Friday the Dow fell right to its 200 day moving average before catching a bid into the last hour of trading. When put into a broader context that 200 day moving average, about 300 points below Friday's close, looms huge as to where the market is going next week, and probably next month if not longer. The final chart below, the scariest of the three, suggests not just a multi-week or multi-month event, but a couple years until a low. That's how important next week looms and that is without regard to election-related volatility.
DJIA - Intermediate Term Moving Averages
If 200 Day MA Fails To Provide Support
This is why we run this trading service, to provide some direction, explanation and ideas on how to make the best of whatever the market hands us. Starting Monday morning, we are locked and loaded for both the best and worst of times...although not necessarily in that order.
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