A lot of people were quite hopeful when the Dow Jones Industrial Average (DJIA) was already at 13,000 and beyond. They were thinking, well that's the end of our bear market. How wrong they were.
After it made its recent high, it's been downhill from there since then. With last night's market, DJIA is back in bearish territory. The last moving average that would've served as a support at 12,500, just didn't hold long enough.
I could be wrong but I think the DJIA formed a rising wedge from end-February up to early May. This rising wedge is giving me a minimum downside target of 11,600 for the index.
Another thing confirming the bearishness of DJIA is the MACD accelerating downwards below the zero line. The bad part here is that the fast line is not letting up yet. Looks like we still have some ways to go down before there would be any kind of rebound.
In this kind of market, there's only two things we can do if we're liquid. Stay away from the market or find a stock worth shorting.