Resistance Holds In The Dow

Today was a down day in the market as the Dow Jones Industrials fell 148 points. As you know I bought the Diamonds (DIA) yesterday at the open and I took it off today near the close at a loss.

The reason I bought DIA is because of the tendency for stocks to rally the 2nd week of the month. Stocks may very well rally the rest of the week closing higher on Friday than where they opened yesterday, but I'm already out of the trade. I keep my losses small and my stops tight.

As you can see the Dow held overhead resistance and turned lower today on an increase in volume. In fact, if you look at QQQQ and SPY you will see increases in volume there as well.

It will be interesting to see how the market closes this week.