Markets nosed dive again (since Nov 14th) to a low last Friday, November 25th.
Another bull trap?
The technical support (and also the 2011 low) for DJIA was 10,400 thereabouts on October 4th 2011. The low for this month of November was 11,250 thereabouts on November 25th, last Friday. Note: 10,400 on Oct 4th and 11,250 on Nov 25th. What a coincidence!
From another angle, the lows are getting higher, while the highs are getting lower. From a technical perspective, while the highs and lows converge, it would indicate a breakout of this range. The biased is downwards. But anything could really happen.
While some of you may already note in times of extreme volatility, when the major averages were declining, the ‘mental’ S&P technical support was 1100. Once it reached that level, the ‘big boys’, bargain hunters, fund managers all kicked in with program …