The world commemorated the 9/11 tragedy today, reminding ourselves how precious peace is.
The Dow turned down by a total of 501 points last week as the Dow headed back down to its 200WMA as I have predicted last week. On the daily scale, the Dow did a textbook style turn around at its 30DMA, heading downwards for a possible bearish breakout of its lowering pennant formation. If the Dow breaks out of this dangerous pattern to downside, we could see a revisit of the 10,000 points level, which is of course back down to 2009 levels which will bring the stock market inline with economic data so far. On the weekly scale, if the Dow breaks out below 10,750 points, it would breach its 200WMA which is always a very dangerous thing to do. Over the past 10 years, everytime the Dow breaks below the 200WMA, we could see significant new lows in the near future.
Good thing for my stock options picks subscribers and Star Trading System students that our system has placed us nicely on the correct side of the market with a couple of good bearish picks so far.
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