$E-mini Dow Futures(SEP4) (YMmain.US)$ $Dow Jones Industrial...

$E-mini Dow Futures(SEP4)(YMmain.US)$
$Dow Jones Industrial Average(.DJI.US)$
$SPDR Dow Jones Industrial Average Trust(DIA.US)$
We saw the Dow failing to break back above 20sma on daily chart and going down all the way to touch the 5EMA on the weekly chart. It was bought right up after hitting the 5EMA which is actually a bullish sign. 5EMA on weekly chart is a good support for minor pullbacks on a bull trend.

We still have to see the Dow close back above 20sma before we can start to see this bull trend resuming. As of now, nasdaq has closed at a new high thanks to amazon, apple and nvidea and I do expect the rest of the indexes to follow through with bullish movements. But we will have to let price action determine.

If the 5EMA on weekly chart doesn't hold, we will see Dow coming back down to the 50EMA as critical support and that if that critical support breaks, we will be looking at a larger pullback than I have expected. We have to be cautious on both scenarios so we are prepared to do what needs to be done when the time comes.

For now, let the price determine the trend of the market and do not be overly bearish yet despite we closed below 20sma twice in a row.

As always, trade safe & invest wise!