Saturday, February 09, 2008

$INDU Update for 02.09.2008


Monthly chart shows index below last year's open, thus the market has taken back all the gains of 2007. The index is also below the up trendline in place, and below the 8ema. There has been nothing but selling the last 4 months, as evidenced by the red candles thus far.

Weekly chart shows that last week's trading activity completely erased any gains of the previous week. Resistance at key LIS "old support becomes new resistance" brought out the sellers who took advantage of the bounce to exit any positions. The Head and Shoulders pattern remains intact. No buy signal/pattern evident on this timeframe. Look for continued weakness unless there is evidence of buying strength, which we have yet to see.

Daily chart shows index below all key moving averages. The last 3 days of the week showed indecision between bulls and bears. No buy signal/pattern on this timeframe. Look for likely test of the January 22nd low and lower.

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