Support Holds – Exactly.
“…the market did in fact move above 27,600 today – establishing that as the new Support Level.” Interestingly, today’s move brought us right back to the same place – a picture perfect retracement to Support. We should Consolidate here but all we really need to do is watch for break or bounce of this level – and go with the flow.
“Again, the market has come a long way since the 26,000 Support Level, which is why I think it will consolidate for a while before making its next move.” Today’s move down could be the start of a Consolidation – sideways movement above 27,600. If that happens, it will be a bullish indication.
DJIA – Daily
“Just remember – markets do not go straight up. It would be very unusual for a continued move up from here without a retracement.” So we got that today – sort of. It was definitely several red bars going down to Support, but as I have been saying, we should expect that. So I don’t consider it a bearish sign – yet.
Since the rout didn’t cover much ground, I expect a bounce off Support, and then, perhaps a Consolidation. But I would be looking to buy UNLESS we push down through 27,600 of course.