Monday, October 8, 2012

Dow Jones ~ Pre-Market ~ 8 October 2012

The Dow retested its bull market highs on Friday and then reversed hard:

The futures are down at the moment, so the Dow should open around the support level at 13560ish.

If 13520ish holds, I think the correction since Friday will be only very-short term. After that we should rally back to the highs and eventually break it.

If 13520ish breaks though, the correction since mid September is probably still ongoing and we could decline much further. Especially because we might have a double top at 13650ish. But one thing at a time, let's see how the market reacts at 13520/60.