Dow 30 Jun 04 to Jun 08 OutlookBy on 2012 Jun 2 Sat 7:05:37
Gap up and traded above Y+1 has turned into a false breakout. That set the stage for a selloff to Y-1. Yet right before Y-1 was tagged, Dow rallied all the way back near Monday low. Then euro zone news shock collapsed the stock markets worldwide, sending Dow to close the week at its low.
Messy chart. Daytrading was fine last week even though one has to change the view almost everyday.
Dow has closed below previous year close first time this year. This has opened the door to potentially more downside if it cannot bounce back quickly this coming week.
If a swing bottom is going to form, it has to happen quickly.
Strong support at B-2 and Y-3.