The 10,450 area turned out to be a good support for the DJIA and the base that i was hoping to see developing produced really quickly, in yesterday’s session.
The last hour of yesterday trading on NYSE revealed the optimism of the investors for the future couple of days (I am not discussing the fundamental news that were assumed to move the market, I talking strictly technical).
The 10,664 level was the main resistance on yesterday’s chart and the break of it, followed by the retest today (on the futures market) set a strong support in the 10,664-10,700 area.
The main target on this rally (if it is going to be one) is in the 11,000 area where more resistance levels are set (not all are shown on the chart due to space limitations). Keep in mind that we are still in bear move on the bigger picture!
On the 5 minute chart there is a flag pattern that emerged and is retested in present. If the buyers will keep their demand high we will see the continuation of the up move started yesterday.
One important fact that sustains a rally is the break and retest of the t2 down trend line.
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