Getting Along with Market Dow Index Levels

Resistance all round, the Dow Index touches on 10,500, the SPI on 4500 BHP on 72 (local BHP 40) Crude looking at 80 and the AUD at .90

Even though markets look up they are at resistance, there are three possibilities, however the likely is profit taking at these levels, a reaction a pull back then a retest of these levels where the market will either climb above or fail the retest, if successful and markets create the first high above the levels, they will come back and retest those levels, where a larger corrective pattern will unfold across these levels, or it can fail as by that time the Dow would have make the 618% retrenchment of the whole move down from the high and BHP would have down the same, I know this is tricky to understand, but put simply expect the markets to create corrective patterns across these current levels.

Also line these swings up with the days in the weekly cycle, Tue is profit take in the morning, Wed is a V shape day and Thursday bearish, this is not going to be easy trading for the momentum trader looking for short term runs.

Yes it's true many of the local stocks will run on the sense of a greasy rag as they are over sold; just understand where they are, such as group1 or 2 approaching or leaving a Medium or Major level and take profits at the right levels.

These larger levels are for day traders, impulse traders will require to pick their stocks sensitively and position traders should wait to see if these current levels deliver the support firstly.