The market direction outlook for Wednesday was for sideways action with a slight bias to the upside. While this sideways pattern is fine as long as it only last a very short while there are growing signals from the Dow that investors should keep an eye on. The Dow Index since it recovered back to the 50 day simple moving average (SMA) has begun to enter a grinding action that needs to end very soon. Today’s market direction action in the Dow showed a dip in the morning and then a rally back up which entered into a sideways pattern. This pattern which has been ongoing for a few days changed today when the market pushed back to retest the morning low in the mid-afternoon.
This article is a strategy discussion of the market direction outlook. FullyInformed Members can read this article directly through this link or Members can sign in to the full members site here. Non-members can join here.