CH15 P5: Assume the following daily closings for the Dow Jones Industrial Average:

Day DJIA Day DJIA

1 13,010 7 13,220

2 13,100 8 13,130

3 13,165 9 13,250

4 13,080 10 13,315

5 13,070 11 13,240

6 13,150 12 13,310

a. Calculate a four-day moving average for Days 4 through 12.

b. Assume that the index on Day 13 closes at 13,300. Would this signal a buy or sell decision?