Friday, May 09, 2008

$INDU Update for 05.09.2008


Monthly chart shows weakness and selling pressure early into the month of May 2008. Topping tails on the candles indicate bears are selling at the 13,000 level.

Weekly chart shows the bulls lost all the ground made last week, as the index closed below last week's low.

Daily chart shows the resistance at the 200sma, and where the bears began selling. Index now weaker, with the index below the 200sma, 8ema and key LIS (old resistance becomes new support -- did not hold). The whole move up off the January low has been corrective in appearance. Look for continued weakness and another test of the January low. IF we head down towards the January low, THEN expect it to be broken eventually, as this would trace out a consolidation pattern.

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