Dow Failed Repeatedly at 30DMA

What a week it was last week! What looked like a strong and promising week ended with much disappointment despite some better than expected economic data. The Dow did another critical failure at the 30DMA last Friday, closing down by 240 points despite Chicago PMI turning in better than expected. Indeed, the market looks totally technical driven at the moment as traders turn bearish on the unmistakable multiple failure at the 30DMA. Every failure increases the chances of a downside 200WMA breakout, which could have disastrous results. At this point in time, investors and traders definitely are definitely putting more emphasis on safety than growth, being more risk averse. Last Friday's action could also be a result of cautious covering before this week's heavyweight economic data starting with the ISM Index on Monday and the Jobs Report on Friday (see Stock Market Calendar). Could last week's bout of better than expected economic data lead to better showing in both heavyweight numbers this week? No matter how they turn out, it is now a topside breakout of the 30DMA that can save the day. So far, it is looking more and more grim...