The market is back to buying mood. The Dow Jones Industrial had a good outing on Friday moving up 122 points. It seems that the bulls are back in control with indexes making a move to the upside and breaking through resistance levels.
Market participation remains low as shown in the low volume of recent rallies. Short term indicators are turning positive however the long term technical picture has not improved much.
The phase chart for Dow Jones is now back to “Bullish” phase. The next resistance is at 10,750 level. The strategy is still to follow the trend but traders will need to be nimble and get out of the way if selling pressure resumes. The index is very likely to test it’s 200 day moving average again. The current 200 day moving average is at 9,670.
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