Wednesday, March 14, 2012

Dow Breaks Support Again

Well at bare minimum, you can say today isn't a strong follow through day.

This is the DJ-30, a little after 11 a.m. the Dow held yesterday's closing support, before 2 p.m. there was a break and right after which recovered, note the 3rd red arrow which technically was a break, but this is why I can't stand when commentators say "Support is at $13177.68", support and resistance are zones or areas and they are created because of emotional responses by humans, of course the machines play their part as well, but it is best to think of support and resistance as areas, as you can see that break recovered. Will this most recent break recover?  It's testing resistance now.

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