August 11


Market Commentary for Aug 12, 2020


August 11, 2020

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.


DJIA – 39 Minutes 

“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.


Ed Downs 



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