The Dow Jones Industrial Average has closed below its 200 day EMA for the first time in 2007.

This is a bearish signal. If the index is not able to bounce back in the next week or two, this may be start of a medium-term bear phase.

The last time the index had closed below the 200 day EMA (exponential moving average) was in June - July 2006.

At that time, the index had formed a double bottom at 10700 and started a fresh bull wave.

Currently the index is in oversold territory, so a strong sell off from this point is not likely in the short-term.

__________________
Read All Rules Before Making Any Post | E-Investing on Google+