$INDU Update for 04.19.2008

DOW JONES INDUSTRIAL AVERAGE - $INDU

Monthly chart shows market found support off the .382 fib area, and the key LIS and 2000 year high.

Weekly chart shows more buying from bulls last week, closing the index above all key moving averages, prior s/r, as well as the down trendline in place. This chart suggests that it is possible that the bulls can gather more strength to a big higher.

Daily chart shows strong buying on Friday. Will this continue next week? Currently, the chart pattern shows an abc 3 wave pattern into slightly higher high for the year. The marginally higher high made on Friday came in at the the 1:1 projection level. One can also make the case that we have 5 waves up - with wave extension seen in wave 3. As it stands, wave 4 looks to only encroach slightly into wave 1. IF the 1:1 holds as resistance, THEN look for deeper pullback to re-test the lows.