Posted Jun 2, 2012 by Martin Armstrong
The Dow Jones Industrials elected Weekly Bearish Reversals starting the week ending May 11th, The next one lies at 11963 followed by 11180.The Monthly level showed that May was an outside reversal to the downside.The month-end closing below 12700 signalled a near-term correction was in order.However, the first Monetky Bearish Reversal lies at 11728 so there is no danger just yet of a broader sell signal. However, keep in mind that we have serious volatility problems coming in September-October. This may also affect the elections. We have exceeded last year’s high and as long as we hold 10632.52 (last year’s low) then we are still in a bullish phase on a broader level. Resistance during June begins now at 12700.A key pivot point we did close below today at 12220. This will drop further to about 11810 for July. The major support lies at 10810. That is the big number to watch.