It seems that the DJIA has finally shown us where it’s going to go…DOWN.  Last week, the index retested the November 2008 lows and even surpassed that only to close a bit higher at 7365.  However, the fact that the lows have been retested doesn’t look good for the market.

Assuming the DJIA is on its way to completing a descending triangle, it would be projecting a downside target of 5694.  But this is still too soon to say so let’s see how things play out.

Checking out the MACD, it shows us that the momentum is going lower and it’s starting to accelerate.  This definitely isn’t good news for the DJIA.  But if you’re looking to short sell, this could be a good opportunity.

Recommendation: Short the weak stocks
Support: 7361