Sunday, April 13, 2008

$INDU Update for 04.13.2008


Monthly chart shows index below 8ema and below prior s/r ("old support becomes new resistance"). No buy signal/pattern evident on this timeframe. Since it still looks weak, look for another test of the very important LIS and current support, and then a final break of support as index heads down to make a lower low.

Weekly chart shows index below all its key moving averages. This chart better shows the "old support becomes new resistance" holding.

Daily chart shows increased selling pressure came back into the market last week, especially Friday. I can see 5 waves up into test of the small LIS and resistance where the bears came out in force. Look for lower lows to be made soon.

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