Dow Jones below 8200 - 7 july 2009

Finally after a brief struggle on Monday, today Dow Jones wilted and closed below 8200.

I believe this is bad news for our market as well.

While market can do whatever it wants to it pays to be cautious, after all the first rule of trading is to guard against loss and the second rule is not to forget the first rule.

For day traders in Nifty Tuesday was an inside day and an NR7 as well. Watch out for if Nifty trades below the low of the day yesterday which was 4156, it is likely to go below 4100.

My last analysis on Dow Jones, breakdown-in-dow-jones-revisited-03 july 2009, can be read here.