Below is Technical Analysis for the Dow Jones Industrial Average ( DJIA ). All information is based
on my sole opinion. I use technical analysis to identify where buyers and sellers are likely to exist. These
areas are what I refer to as support and resistance levels. Technical Analysis allows me to form a game plan before
a trading session. It also allows me to indentify the current trend of the overall stock market ( Uptrend or Downtrend
). Most successful investors and traders use technical analysis on a daily basis. While technical analysis can
get really technical, I only use high and low points as well as three moving averages ( 10 day, 50 day, 200 day moving average
). In addition to the moving averages I use for the Dow Jones, I also look at volume. For more on the stock market,
visit my blog - http://daytradingstockblog.blogspot.com
The Dow Jones closed out September down for the month baut basically
flat given all the volatility. As we head into October 2011, which is also the start of earnings season, the Dow Jones
has formed a double bottom around 10,600. If we hit 10,600 October, it becomes a buy signal. If we close below
10,600, I would sell out of position because we will most likely retest 10,000-10,200. Resistance on the upside is located
at 11,400 which is the 50 day moving average. If you are looking to buy the stock market on a turn higher, one sign
to watch out for is a close above the 50 day moving average, something the Dow Jones hasn't done since the decline.
