Saturday, March 29, 2008

$INDU Update for 03.29.2008


Monthly chart continues to show weakness. Current support is right off the January 2000 high. No buy signal/pattern evident on this timeframe. Index remains stuck in consolidation/trading range. It is looking more and more like wave 4, with a lower low to follow.

Weekly chart shows the bulls were overcome by bears last week. Index remains below all key moving averages. No buy signal/pattern evident on this timeframe.

Daily chart shows increased selling last week. The bears managed to close the index below all key moving averages on a weekly basis. We have now completed an abc 3 wave pattern in this consolidation range. IF this is indeed a wave 4 consolidation range, THEN look for wave 5 to take the index to a lower low.

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