BigTrends

With July 2009 drawing to a close as a historically strong performing month, major indices are approaching key round levels that haven't been seen in some time.

The S&P 500 Index (SPX) (SPY) is closing in on the key 1,000 level -- currently at 988.77.

The Nasdaq Composite (COMP) was briefly above 2,000 this week -- currently at 1987.61.

The Dow Industrials (INDU) (DIA) have already taken out 9,000 -- currently sitting at 9,185 -- many are talking about a possible test of 10k this year.

Major round strike prices are often important psychological and technical levels -- in my view how the indices react as they approach these key levels (a clear breakout above or pullback lower) will be important to determining the next major trend direction in the markets.

Today marks the 113th anniversary of the forming of the Dow Jones Industrial Average  (DJIA).  It was created on May 26th, 1896  according to Wikipedia.

Looks like the markets are under pressure again on Monday - will it be another low risk entry?

 

We were looking at DJIA monthly chart going back 90 years today with simple moving averages to see where we stand. Interesting thing is we have completely broken the 10 yr ma that held as support in 2002/2003 bottom. BUT we are in between the 20 and 30 yr ma, right around the 25 yr ma, around 6600 DJIA. 20 yr is around 5500, 30 year around 7600. The interesting thing to me about that is the Great Bull Market began in 1983 ... so we are about 26 yrs beyond that (it ended in 2000/01 or 2007 most think) ... point is, we are right around where an average uptrending line from 1983 to now would be ... i havent looked at the exponential ma yet. Oh, and the 50 year DJIA ma is around 3,600 if you want to really scare yourself