The Dow Jones Industrial Average ($DJI) has been incredibly bullish over the last two months and is now enduring another modest retracement. This pull-back could offer another great buy signal if price can remain above 11,200. Take a look..
Buy the Dips
The Dow has been trending steadily higher at a steep pace since the beginning of September, offering solid buy signals along the way. Whether you’re using the Modified PEMA Crossover, the PEMA Pull-Back system, or pivot trend analysis, the current trend has been excellent for bullish re-entries.
The daily chart shows price has pulled back modestly the last three sessions. This pull-back could lead to an influx of buying pressure ahead, especially if price can remain above 11,200.
Any morning weakness should be watched very closely for signs of responsive buying pressure, as we could see a very nice reversal that leads to day-long strength.
The 11,200 to 11,250 zone could provide a nice launch pad for buyers.
While this pull-back could lead to a bigger retracement ahead, we have to assume the bullish pattern of the market will remain intact until this theory is disproven.
Let’s see how this plays out!
Cheers!
Frank Ochoa
PivotBoss.com
Follow Frank on Twitter: http://twitter.com/PivotBoss
