Dow Testing Recent Low
David Tablish | Jul 07, 2015 01:44AM ET
We are now getting a test of the Dow's low from its big decline last Monday. This is to be expected since often, it takes multiple tests before support really sticks.
This is the moment of truth because this low needs to hold support or a bigger decline can be expected. You can see the 200 dma, the time cycle low and the very high volume spike from last Monday, all in the down-to-up volume chart, below. Signals are showing this could be an important low.
The down-to-up volume chart shows the low from last Monday had a very large capitulation spike, the highest since 2012 or so.
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