Bearish Flaggishness

Take a zoomed in look at this chart of the Dow 30. I have extended the chart and connected the recent upward sloping lows. I created a parallel line to that to project out the possible pattern, and it could be forming a bearish flag over a period of weeks. It is tough to know when the market will make its decisive move rather than simple a move within a range...but you can see the patterns start to develop as they happen. This of course does not mean it will materialize.

The Dow 30 looks like it wants to try to test the 50 ma from below sometime soon, between 11,600 and 11,900 is the resistance zone. This also around 50% retracement of the recent decline, so beware of rallies into this area. We could very well get another leg down from there, so I am keeping my powder dry aside from day trading potentials. Patience is an absolute necessity right now for swing trading, and abstinence may be the best policy. But a little day trading here and there is in the cards with a volatile market.

Good luck this week all, and hope everyone got through the hurricane safely.