- The Big Picture - http://www.ritholtz.com/blog -

Chart of the Week: Dow Jones Trading Range

Posted By Barry Ritholtz On June 16, 2005 @ 10:36 am In Markets | Comments Disabled

After the recent run up, the Dow has been rangebound. This present consolidation represents a way for the market to catch its breate and reload afte rthe big move since the May bottom.

While I’d expect a little retracement and or back anbd filling, I suspect too many other people are hoping for that to happen. Therefore, wait until this range is resolved in either direction before putting too much money to work.

Chart of the Week:  Dow Jones Trading Range

click for larger chart

Dow_chart_061305 [1]

I plan to buy the breakout above 10,610 on a closing basis or if we drop below 10,400, then find an appropriate retracement (Fibonacci?)

I am watching the other major indices — Nasdaq and SPX — for confirmation. Its also worthwhile to keep an eye on the Dow Transports, given yesterday’s Baltic Dry Freight Index [2].


Random Items

Neighbors as Marketing Powerhouses

collaboration on the Internet is shaking up business

Puzzled and Worried About Global Rates

How Much Is It Really CostingTo Comply With


dilemma: fixing the problem

Front Lines Of Asian Battle Against Bird Flu


Attack of the Drones [4]


Quote of the Day

past cannot be changed. The future is
yet in your power." ~ Mary Pickford

Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2005/06/chart-of-the-week-dow-jones-trading-range/

URLs in this post:

[1] Image: http://bigpicture.typepad.com/.shared/image.html?/photos/uncategorized/dow_chart_061305.jpg

[2] Baltic Dry Freight Index: http://bigpicture.typepad.com/comments/2005/06/baltic_dry_inde.html

[3] POWERLAW: http://www.shirky.com/writings/powerlaw_weblog.html

[4] Attack of the Drones: http://www.wired.com/wired/archive/13.06/drones.html

Copyright © 2008 The Big Picture. All rights reserved.