Traders Cooperative

[opnion]

$Indu playing chicken or gasping for air?

Many on TV and the buiness network shows are watching to see if the dow is going to touch the November lows, so what if it does touch them. There are 2 key levels to watch on the $indu, the first is 7400 and the second is about 7200. 7400 is a very strong multi-year area of support that attracted the 2002 spike down back up and away. 7200 is an area that if violated convincingly sends the dow to new multi-year lows. In watching this drop there are no buyers in the market but then there are few sellers as well. The $vix may be contained in the 51 area or on the outside could spike up to the 59-60 area. I don't think that is the place to be short there. Btw the $usd has or should shortly breakout to the upside toward the 100 level and probably slightly above that. 88 needs to be printed and held. For now I think the $indu is playing chicken.