Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

TAM's Pedagogics: March 14th, 2011

With the clover-filled week ahead, the market is in much need of luck from the green leaf. Conversely, we all know there is no place in investing for luck. Last week’s conflict completed the 1st technical bearish pattern since the May 2010 “Flash Crash.”  Friday I spoke about a potential – and limited – bullish bounce to either fill Thursday’s gap open or retest the underside of the broken intermediate-term trend. The light volume reversal on Friday accomplished the latter. 

DJIA Daily Chart
DJIA Daily Chart
The technical action will now be determined by directional volume and shorter term patterns as they arise. Since last week was focused on the NDX & SPX, today I draw the eldest sister (DJIA). As it stands now it looks as if the next real support (excluding simple volatility) looks to be hovering around 11,500 where there is a converging short-term Floors & Ceilings and parallel upward sloping trend. Keep in mind, if the bulls regain control, ~ 12,260 is the number to watch.
 
Good Luck & Keep Your Wits About You!
 
KAT


For more equity research, visit: www.TuttleAssetManagement.com