As we expected last week, the DJIA could not bring itself to higher levels.

The index has been flirting with the 200-day moving average but has not been able to break free from it.  By this coming week, it has to decide where it wants to go as it is now caught in between the 50MA & 200MA and the range is now quite narrow.

In our view, it is more likely that DJIA will correct once more, probably to where the 100MA is right now, which is 7971.  The MACD has also been showing us that the current momentum for the index is pointing downwards and this doesn’t look good for those who went long.  It may be time to unload some of those holdings first and just get back on it when things are better.

There’s a time to fight and a time to flee.  This is the time to flee, but only for the moment.

Recommendation: Sell
Support: 7971