Morning Dave, I am watching 9000 as critical support here. Not sure if you saw my somewhat joking post comparing MIR to the INDU #msg-1215198 but just as MIR sold off quickly after losing support at it's major moving average then so also the INDU might selloff if it loses support at it's 50SMA. It is also possible though that we see the slow steady incline that kept the markets moving from April until June, maybe. The market traded from 8200-8600 during that period and could trade here between 8900-9300, maybe. Continuing to hold support above the 50SMA might be the deciding factor. Losing support at the 50SMA and it becoming resistance might have the market mvoing to 8600-8700 to retest support though. That is again where the MIR comparision would show a retest of that lower support bouncing to find resistance at the 50SMA and then continuing down. A possible scenario if the 50SMA fails and there is not enough optimism about any sustained economic growth forecasted for the 4th quarter. The timeframe for such a decline to retest lower support might not be too far off with September generally being a selloff month. There is always the possibility of a ramp up into September much as last year though to limit the damage, maybe. Another potential negativity is that most major Al Queda attacks occur every two years. That would leave this year as being a higher probability of some type of attack. I don't want to be too much Doom and Gloom but the possibilities for a substantial selloff in September again are there. August will most likely be a testing month with the Markets continuing to consolidate near the 50SMA and trying to decide if it is support or resistance, maybe. Any more Negative News could have us retesting 8800 before then though and setting up September for a possible decline to 8500 or lower. Again, the markets continuing to hold Support at the SMAs will be the deciding factor and If that support is lost could setup a fairly negative scenario. We will just have to watch and see what happens. Good Luck Dave! :^)
A New Channel starting? I don't have a stockcharts account so maybe you can draw in the new channel lines from the lows and highs the last month and a half?
News 
Market Data 
Discover 
