Dow futures followed the other stock indices down, and had the same breakout and momentum buy day setup as I described in yesterday’s post about the S&Ps (read ithere.)However, it didn’t see the rally that the S&P and NASDAQ did, and ended with a doji.
Yesterday’s told us that traders were still undecided on market direction, and still set up for a directional move.Early weakness found support around yesterday’s low; this coincided with trendline support at 8208. As the rally took hold, it took out resistance at an overnight high of 8346 then yesterday’s high of 8370.
From here, the Dow sees trendline resistance at 8391, last week’s low at 8406, then Fibonacci retracement resistance at 8436.Momentum has moved up; tomorrow should be a momentum sell short day.
Narrow range day, then a doji
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