The Dow and S&P were down slightly. The Nasdaq, however, ended in the positive. They made me yawned. This is the kind of trading day I usually go away to do something more productive. Play a round of golf or catch up with other housework. Really, it is quite alright to get away from the market whenever you can. Spend some good time with family or friends and have your mind clear. After all, nothing will happen until the Fed meets.

As far as the charts are concerned, nothing difference from those that I commented a few days ago. I am still waiting basically. Anyway, I try to take a different look at the Dow chart today, just for the fun of looking at it from other perspective.

I have two charts – daily and weekly.

DJIA Daily Chart

From the daily chart, I am still seeing a bullish market but near the resistance of 13150. We have three supports as shown on the charts as arrows. The major support is 12400. When I begin to confine the price bars over the past two weeks or so with two straight lines, I actually see narrowing channel pattern called the Wedge. This is a rising Wedge, which is a bearish sign.

Although my price chart (daily) suggests a bullish Dow market as of now, it is certainly at risk of breaking down. Will that happen sooner than later? Since my resistance was taken from the weekly chart, I try to search for my answer in that chart.

DJIA Weekly Chart

Now, something made sense here. Why the bulls are so sluggish? When I apply the Fibonacci indicator on the weekly chart, I can see the strong resistance at 50% retracement. This explains why the bulls had hard time moving higher despite several attempts in the past two days. Yes, it is possible that the Dow may retreat sooner than later. After all, the 13150 resistance is not too far away to make it valid.

Let’s not go too far to predict the market too much. No action will be taken until it is proven. This is still my motto of trading. The Fed’s meeting can be the key to the answer.

STOCKS TO WATCH:
Any stocks that show breakout either ways. Minimum 5% change.

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