As we noted in our last DJ comments; we received a sell signal on 6/16/09. Since that time the market (basis Sept contract) tried to rally and hit a resistance level of 8566 on 6/19/08.
Today the market continued to sell off and settled in a strong support range of 8300 to 8270. This range is just above our target of 8240. If the market continues to fall, we see the next leg of support around 8170 to 8090. This would be a major support level and test the lows of May. If this was to be broken, we would be looking at 7840 to 7970.
There is a possibility we could get a short term bounce from today's settlement. If so, we would be looking at resistance of 8310 to 8356.