Saturday, March 01, 2008

$INDU Update for 03.01.2008


Monthly chart shows February ended with continued selling pressure, as it closed below the up trendline in place. It also closed below the open of 2007, erasing the meager gains of last year. No buy signal/pattern evident on this timeframe. Look for continued weakness and increasing selling pressure.

Weekly chart shows head and shoulders pattern remains intact. The index spent the month of February in consolidation. Look for continued weakness and for the low made on January 22, 2008 to be tested and then broken.

Daily chart shows the increased selling pressure on the last day of February, 2008. We have made a lower high, and now we should test the January 22, 2008 low and eventually continue lower.

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