Since the major rally that we experience from the March 09 low the Dow Jones index has been trading in two sideways ranges. Yesterday (15 June 09) it traded sharply lower to the downside of the current trading range. Will the support hold?During May 09 the Dow traded in a distinct sideways range before it on 1 June 09 had an up-day and commenced trading in a sideways range sitting on top of May’s range. So looking back over the last 6 weeks we are faced with a significant support level created by the tops in May and lows so far in June.
If the market well and truly breaks this level we might be faced with a significant reaction to the rally we have seen since March 09.
Dow Jones sideways ranges