Greetings! Let’s look at the Dow Jones chart since we talked about it last week.
Here’s the weekly chart of DIA, the index that tracks the Dow Jones index. Since we have seen confirmation of selling near the supply zone, now is a good time to sell or go short if you are a short term trader. I’m guessing we will drop to the low 240s in a month or so, which would be retracing half of the previous move up.
The lowest price in the last few months was about 215, with the highest near 260. So that’s a climb of 45 points. Half of that climb is about 22 points. 260 – 22 is around 240.