Greek Issue again- Is this a wolf cry or market reversal point?

Trend: Uptrend, 20ma up, MacD above 0

Support: 10980 (20ma), 10835 (50ma close), 10720

Resistance: 11210, 11390

Observations:
Candlestick – One long black candle, possible evening star formation.
Histogram –Turn R after 2G. Bearish divergence is seen.
RSI – Slightly above 50%. Bearish divergence is seen.
Stochastic – Bearish crossover. Now out of overbought.
Bollinger Band – At mid band.

Conclusion:
Greek issue haunts the market again which caused a sharp drop in DJI last night. Will this time round be a wolf cry like last week or it is the sign of the market top? Let’s look at the technical aspects.

Last week, DJI broke the previous high and starts to form a higher high. Yesterday’s drop confirmed the higher high and forms a resistance at 11210 level. As a higher high is being formed, a higher low could be seen next. Hence, it is important that support level should hold in order to conclude that the sentiment now is still bullish. Last night’s closing closed around the support level of 10980 level, which implies that DJI might still be supported for the upside movement. Looking at the indicators, there is no indication that this current support level might hold.

Therefore, the next support level is a very important level to maintain; failing will mean that the uptrend might have changed to downtrend. 10835 level could be a strong support level as 50ma might confluence with this support.

Hence, we could expect bearishness to continue to 10835 level as the indicators still shows bearishness. But we cannot rule out that it could be supported at the current support level as this too is also a strong level.

What to watch out for tonight:
1) If 10980 level fails to hold, expect downside to be up till 10835 only.
2) If 10980 holds, a bullish reversal candle might be seen to confirm this support and uptrend will continue.

*Disclaimer applies