Sunday, May 18, 2008

$INDU Update for 05.18.2008


Monthly chart shows index above the 8ema and the 34ema, with the key LIS (2000 high) holding as support (old resistance becomes new support). The bulls are looking to test the October 2007 high.

Weekly chart shows index now above all its key moving averages, with the 8ema, 34ema and the 89sma just below as support.

Daily chart shows index just below its 200sma. Last week was options expiration week, and while the bears tried to take the index down with their selling, they were met with buying, as the bulls quickly regained any ground lost early into Friday's trading. Next week, look for a test of the current high. IF the high holds, THEN look for a retracement of the last leg up from the March low.

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