After hitting a high of 8657, the DJIA has corrected, nearing the 100-day moving average at 7932.

There is still this lingering feeling that the index is undergoing some consolidation that is readying itself up for a reversal.

The 50MA racing towards the 100MA is one indication.  It’s becoming more bullish as the DJIA progresses.  The other has already been spotted before.  The MACD has a bullish divergence set on October 2008 to March of this year as the index kept making lower lows while the MACD is making higher lows.

I think it’s only a matter of time before we see another major rally for the DJIA.  I say rally because the primary resistance is still quite far, roughly around the 11,000 level.

There could be some opportunity for us, we just need to be patient to find it.

Recommendation: Buy selectively
Resistance: 8920