DOW Tests The 12,800 Level and Falls Off From There

The 12,800 level on the DOW has held as resistance for most of this year. For the first time since January the DOW closed above 12,800 on 4/18/2008.

After that a small rally ensued that drove the DOW to just beyond the 13,000 mark. At that point the DOW was faced with bumping up against the yearly highs. The highs were tested on several occasions. After the high on 5/19/2008 the DOW has started to move back down towards the yearly lows.

At this time the DOW is just about in the middle of the year's trading range. In fact the DOW is sitting comfortably in an area of some price congestion.

We are closer to the yearly lows than we are the yearly highs. I'm not going to predict that we will test the lows soon so we will just have to wait and see.