Looking at a chart of the Dow Jones Industrial Average over the past 12 months helps provide context to the last few days. It reflects some of the technical reasons I mentioned in an earlier post.
First, the current level is still around 9.50% above its 200 day moving average (blue line), a key indicator for many. Before the pullback on Monday, the that figure was almost 18% extended. Secondly, the Relative Strength Index reflects near overbought conditions for some time. The pullback approached oversold levels, which could be the reason for the bounce
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