Saturday, August 04, 2007

$INDU Analysis for 08.04.2007

The Monthly chart shows resistance at the 1.50 fib level, where net sellers were evident the past 3 months. The monthly chart for The Dow does not look "as bearish" as that for the SP500. The SP500 chart is more heavily weighted with financials and technology stocks.

The weekly chart shows similar confirmation sell signals as that for the $SPX. Downside tgt for the coming weeks is the .618 fib level and visual s/r and key LIS of 12,800 level.

The daily chart shows key support level and LIS at the 13,260 level has been broken. IF the markets continue to bearish next week, look for this to become resistance. The next key LIS at 12,800 is not that far below us.

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