Where is the DJIA Headed?

There has been lots of talk about a correction in the Dow lately, and not just the talk that’s always buzzing around with the bears.  We’ve definitely seen the DOW lose some steam, but after a solid run of 7000 points this is to be expected.  Yes, it has faltered, and is hanging around a scary 16K level, but is this really a problem?

 

The way we see it, its still a bull market, just a cautious entry point.  The Dow could drop another 3500 points and we would probably try a bottom fishing approach (depending how quickly it dropped, or if pushed by HFT trading strategies etc).   However, that being said, we don’t really like the Dow here for anything other than a possible range play, and we would seriously consider shorting anything weak on the off chance the Dow breaks downward for a real test.

 

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