Our research shows the remainder of the month of October should continue be volatile but with a bias to the upside. Last week our previously forecasted short term tradable bottom held between 15800 and 15950 for the DJIA. Now we need to see a follow thorough to the 200 day moving average this week. The 200 day sits between 16585 and 16625. This 200 which was previously support when we were above it, is now overhead resistance. We don’t expect to move right through it without a fight so we should pause and pullback from those levels. By a pullback I mean no lower than 16150 to 16200. From there we’ll need to bounce and recover quickly and move back up and through the 200 day at 16600. Then continue up to around 17000 or higher. So based on the detailed forecast of our research the broader markets will need to function in a very structured and measured way.
