Since October 23rd, the Dow Jones Industrial Average has been a place where we’ve wanted to stay away. This was the day that it first crossed above what was then, and still is, a flat 200 day simple moving average. When prices are anywhere near a flat 200 day, we want nothing to do with it. For almost 2 months now, this index has been stuck in a tight, yet volatile range, frustrating both the bulls and the bears along the way. But after the dust has settled, prices are exactly where they started on October 23rd. To me, it’s the perfect example of why we avoid these sort of situations. Who needs that headache?
The problem that I see moving forward is the uptrend line from the August lows. This trendline has now been tested 3 times and if it fails to hold, it would present a huge problem for the popular large-cap index. This 17,150 level is important as it goes back to former support levels in December of last year and again in February....MOREHe goes on to say again that 17,150 is the magic number, 17345-down 150 last.