The DJI clearly has a hard time to build support on current levels. I wouldn't initiate a long-term trade just yet. There is a possibility of breaking through and achieve new highs, but I think that's very unlikely to due to the bearish divergence on the monthly chart. I would suggest waiting for a cross of the 8 EMA through the 21 EMA on the monthly chart, since that was the key indicator for the 2008 crisis. We haven't had such a situation since. To be even more safe i would initiate 50% on the first cross and then another 50% on the bear cross of the 21 EMA crossing the 50 MA.
It's not a juicy short term gain trade, but at least something to keep in mind and to stay ahead of the masses.
It's not a juicy short term gain trade, but at least something to keep in mind and to stay ahead of the masses.