The Daily Dow

Hi Dynamic Traders

This trading week seems to have flown by! I hope you've all managed to gain some good profits on your trades.

I've decided to take a look at the Dow Jones today. Keeping an eye on the indices obviously plays an important part in trading as the sentiment of the markets and the overall economy would certainly have an influence on forex markets too.

Earlier this year we saw the Dow hit a low point at approx 6500 - we hadn't seen levels like this since 1997. Since then price has steadily been on the up. The VI was previously acting as resistance and in July we saw a break above the VI resulting in strengthened continuation on the upside.

We're now at an important point on this chart. As you can see price is sitting in a resistance zone and in addition to this we have the big RN close above and MACD signal lines are also showing divergence. As price is squeezing between the TL and the R zone, it will inevitably be forced to decide on its direction. Will it continue with strength and breakthrough the zone or will the psychological barrier of the 10,000 mark prove too strong for the buyers? It would be very useful to analyse HTF's at this critical and vulnerable point on the chart and see if any further light can be shed.
















Be prepared for whatever the market decides to do! Please carry out your own analysis.

Have a fantastic day and trade with passion.

Sonia Molina