This is a follow up to my TraderPlanet article from 9/8 on the Dow. It is a good example of the robustness and consistency of volume-at-price analysis. The analysis put forth more than a month ago remains applicable and even timelier today.
From 9/8:
Each of the stock indices, the Dow included, hit key levels of support on the sharp selloff last month. Now that the stock indices are bouncing, the big question is, “What’s next?”
There’s no ambiguity in my opinion on this matter. The stock indices are bouncing to another opportune selling area and will continue with a new downside push once we’ve reached these zones.
In the Dow Jones Industrial Average, the first area I expect selling pressure is at the 17,037 level, which was the low of the year for the first half of 2015 and was a breakdown level. If by chance the Dow could manage to push above this level, the robust area of resistance beginning at 17,714 is a prime selling opportunity, if only the index manages to reach it.
If you’d like to learn more about how to read the stock market and use volume at price information, click here: http://www.volumeatprice.com
