The Dow Jones 30 initially fell on Friday to test the crucial 52,000 level but has turned around to show signs of life again. At this point, the buyers continue to buy dips.
Dow Jones 30
The Dow Jones 30 initially fell on Friday to test the crucial 52,000 level. The 52,000 level is an area that has been important more than once and bouncing the way we have from there is a sign that perhaps the overall sideways action will continue despite the fact that there are a lot of fears based on the situation in the Middle East.
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Most of the selling was actually premarket by European and Asian traders, which, of course, does not make up most of the volume. As we got into the latter part of the session, New York initially sold off and then turned everything around rather rapidly. By doing so, this shows the resiliency of the market and the fact that we are still very much in an uptrend.
Market Resiliency and Technical Formations
In fact, the candlestick is starting to form a bit of a hammer, which is a technical bullish sign, especially considering that we had seen the same thing happen on Tuesday. In other words, there are plenty of dip buyers out there willing to get involved.
The volatility has picked up intraday, but at the end of the day, we are still very much in the same consolidation we started the week in. We have seen a massive uptrend for quite some time, and right now it just seems as if we are grinding back and forth in order to work off some of that excess froth. Interest rates dropped a touch during the session, which does help as well, and ultimately, this is a market that I have no interest in shorting.
I believe at this point in time, it continues to show resiliency, and until we break down significantly below the 52,000 level, it looks like buyers are willing to take advantage of any dip in order to make purchases of cheaper contracts.
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