Dow finds slight support, trades in tight range

The Dow has hit a little bit of support lately after falling largely several sessions ago. I don’t think it’s much to worry about if you are shorting the market, but keep an eye on things in case the market moves higher off this consolidation.

Also, volume was slightly higher today than the previous two sessions. Again, if your are short the market, you want decreasing volume on rising days and increasing volume on falling days.

DJIA 7 21 10

We're seeing lower highs and lows as we move on in time. Until this changes, the market could continue to fall.

I expect the market to continue to bounce around between 10,050 and the moving averages before finally moving below the support.

The thing I would look for to see if the market could go higher is a high volume day where the market moves down sharply and then finishes near/on the highs for the day. Otherwise, expect it to continue lower.

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Alex Stewart

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