Above is a daily chart of the Dow Jones Industrials. You'll notice yesterday that the dow failed at a significant level of resistance which consists of the one third Fibonacci retracement level and the lows from last January and March.
This market is very difficult to trade at the moment, at least for me it is. You'll recall I was looking for a bottom in the stock market and it appears that the market has indeed rallied over the short term, but the groups of stocks that I was looking to buy (commodity related stocks) have not rallied.
Right now I'm going to sit on the sidelines as far as the stock market is concerned and patiently wait for a low risk trading opportunity to present itself.
Thursday, July 24, 2008
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