Dow 15th feb

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Dow closed at 12,348.21 just above the 20-Day moving avg, which is a strong support level. In case it would have closed below the 20 day moving average, we could have concluded that the market looks negative. The fact that dow has been able to sustain this level shows a strong support.

But if you look at the volume. The picture looks to be negative. Jan 1st to about 20th Jan the dow saw a big correction and that too with huge volumes ( See charts, dow lost about 1200 points and the volume kept on increasing). After this correction there was a pullback but with lower volumes (this shows there were not many traders who were bullish)

My take : Wait for the DOW to give a signal (upward or downward) if dow breaks the 20 day moving avg. with heavy volume we may see a level of about 12150-12200.
If it moves up from here with good volumes we can see level of 12700.

Varun Malhotra