World Average Testing Support

01/27/2010 9:34 am EST

Focus: STOCKS

Thomas Aspray

, Professional Trader & Analyst

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The Dow Jones World Average, after several tests of the 235 area, has dropped back to test trend line support at 221. There is minor Fibonacci support and stronger chart support in the 211 area. The 200-day MA is currently rising at 205 with the 38.2% retracement support at 195. We should see a decent rebound in the next week, which will likely test the resistance in the 228-230 area. There has been some deterioration in the weekly studies, so the strength of the next rally will be critical.

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