Dow Jones Industrial Average

The daily chart shows a series of lower highs and lower lows off the high in April with a move down though the February lows. This is not the strongest downtrend, but is indeed a downtrend. The market is now moving back up with a closer look on the 4-hour chart below. Adding Fibonacci retracements, we can see where the market is currently between the 50% and the 61.8% levels. This is kind of on the edge which is not unusual for a Friday. One would think that if this market is going to move down, there should be a reversal soon since we are close to the 61.8% level which is at the 10,200 level. A move strongly up through that level might be a good indication that this market is ready to resume the uptrend. But the first level to watch is the 10,200 price area. While this price level may not be important in the long run, for now it is worth watching for hints on the next big move.