102108 - Tuesday's action

I have gotten several requests to update my previous posts on tracking the Dow chart.

As you can see, price rallied above 9,000 and pulled back to re-test that area as support this morning. Price bounced off that level, but rolled over in the afternoon and headed back down...once again stopping close to the 9,000 mark. A break below 9,000 would be bearish and would signal a potential move back to 8,000 and the lows of 10/10/08 (note the short-term trendline in yellow that could provide some support on the way down). Of course, if we get a big gap up and move above the Retracement Zone there is plenty of room to rally. Remember - I don't care about predicting the market, I just trade what it gives me every day.

I have also gotten a lot of positive response to my posts regarding the interaction between the ES and NQ charts. Today provided some good examples again, and if I get time later I will post charts.

On the issue of time - my posts will be sporadic over the next two weeks. I am doing some volunteer work for the Obama campaign, including a trip to a battleground state and a lot of phone canvassing. I urge everyone (except McCain supporters*) to get involved. It is simple, and you can assist by making calls from the comfort of your own home, doing things in your own community, or traveling to a battleground state. Find out more by going here.

Dow chart - 102108:




Note - AAPL and YHOO report earnings after the bell. That should give the market some direction for tomorrow!


*McCain supporters - just keep doing what you are doing:



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