Disclaimer: For education/entertainment purpose only. Invest at your own Risk
The Dow closed at 10974 which is 32 points greater than previous close at 10942
The Dow pulled back from yesterday's lows today, forming a clear range at the highs and had a 32 point gain in the process.
The index is winding up beneath the major upper channel line and looks to be gearing up for a potential breakout.
Also, this is the second price bar that is GREEN.
It is trying to break above the bearish channel where it was stuck for the past few weeks.
If it breaks above the bearish channel, then the trend will not be bearish. However, it can still not be bullish.
You see, the blue dotted moving average is still sloping downwards.
To be called BULLISH, the Dow has to cross the previous resistance level at 11,200 to 11,300 level.
Till then, it is neither bullish nor bearish.(Sidewards trend)
In a sidewards trend, the best strategy is to stay out of the market.
Now is the time to tighten your short selling stops and cover some of your short positions.
Let us wait and see if the Dow becomes powerful enough to cross the BEARISH channel or if it just goes down again back into the channel.
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