For those astute market players who are of the opinion that the current financial and economic troubles are far from over and that we are in a bone fide bear market, this daily chart of the Dow Jones Industrial Average (click to enlarge) would:1. confirm that opinion
2. seem to indicate that now would not be such a bad spot to add to an existing short position if not initiate a brand new one.
We are getting tantalizingly close to:
1. the psychologically important 13,000 level
2. a rapidly falling 200-day simple moving average (now very close to ....the 13,000 level)
3. a previous significant support line, broken in early 2008 and now a significant resistance line.
I am forgetting the 14-day RSI, very close to 60 which is usually as high as the RSI gets in a bear market.
On the sentiment side, it appears the gloominess has lifted considerably after the Google earnings blowout (I'm just echoing the fundamentalists here), a rather bearish development in a bear market.
Should the Dow convincingly break above both 13,000 and its 200-day SMA I might regret this post...
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