Adjust your strategies according to the market you work in

The rebound from the recent market dip in the United States has been much more rapid than expected. The tests on support near 9,600 on the Dow were successful and have provided a springboard for a rapid rally above the significant technical resistance level at 10,200. Traders who took defensive exits as the market fell are now entering the market again as the rally has rebounded from the support levels.

A successful Dow break above 10,200 followed by a successful retest of 10,200 as a support level will signal the continuation of the long-term uptrend. The first target objective for this is near 11,600.

The American economy is a two-part economy. The first part is favored by Warren Buffett as shown by his recent investment in railways. It's the older economy and rests on traditional manufacturing and production. This economy is tracked using the Dow Index or the broader S&P 500 index.