*Market Update*
The Dow Jones Industrial Average rallied more than 400 points from last week’s low, closing the week down near 10,150. Gold gave up ground when equities rallied, gapping down $20 per ounce before clawing back $10 per ounce last Friday. Crude oil continued to trade between $70 and $76 per barrel for the week and finished near $74 per barrel.
In the image shown above there are two prices to pay particular attention to. The first one ($9880) has proven to be the most significant level for the last several months. The previous post discussed this level and whether or not it will hold. Since then we saw it bounce up, return down breaking below support, and bounce right back up thus confirming its iron clad grip. A new question now stands: is this the ”New Low.” The next level ($10,313) created a ”Higher Low” by bouncing off old support/resistance. Also, price was unable to break above the 38.2% fibonacci level, adding significance to the fibonacci retracement. If you refer back to “May 20th post” you will notice that price is trading in the 400ish pt. channel mentioned in the post. The next phase is to watch this new channel and look for break outs or continuation in trend.
Interesting things going on in the markets. Take this info into account while trading and keep in mind the importance of the levels and such. Successful trading and keep up the great work.