Remember the LORD for it is he who gives you the ability to produce wealth and so confirms his covenant... Deut. 8:18

Saturday, March 7, 2009

DJIA Market Notes

The Dow closed higher due to a late-day short covering rally on Friday. Early weakness saw the Dow post a new low for the year. The mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are oversold but are neutral signaling that sideways to lower prices are possible near-term.

If the Dow extends this year's decline, the April 1997 low crossing at 6315 is the next downside target. Closes above the 10-day moving average crossing at 6956 are needed to temper the near-term bearish outlook in the market. Closes above the 20-day moving average crossing at 7383 are needed to confirm that a short-term low has been posted. R2 = 7383, R1 = 6956. S1 = 6469. S2 = April 1997 low crossing at 6315.

April gold closed sharply higher on Friday as it consolidated some of this week's decline. The mid-range close sets the stage for a steady opening on Monday. Closes above the 20-day moving average crossing at 944.62 are needed to confirm that a short-term low has been posted. R2 = 964, R1 = 944, . S1 = 900, S2 = 892

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