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Back Up to a Resistance Level

By Dick Arms

 About this article:
 It is a market that does not want to quit. On Wednesday it suddenly dropped extremely rapidly and again went below the 10,000 line. That broke the ascending trendline going back to the beginning of the month and suggested it was turning lower. But after a further drop to the logical support level, the lows of last week and the highs of September, and then swinging above and below the 10,000 line innumerable times, the buyers came back in, erasing all of the prior day's decline. So that puts us back near the highs, but also at the level where resistance has now appeared for well over a week. As measured by the 10-day Arms Index, the market is overbought here. Note also that the MACD, across the top of the first chart, below, is looking as though it is about to cross to the minus...

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