Sunday, June 22, 2008

$INDU Update for 06.22.2008


Monthly chart shows the index in danger of falling below the January 2000 high and all important key LIS. This week's price action closed the index below the up trendline in place on this timeframe. No buy signal/pattern evident on this timeframe as of yet. Look for the key LIS and 11,750.28 level to break and index to fall hard.

Weekly chart shows the bears came out in force, and the index remains well below all its key moving averages. Expect to see the January 2008 low to be broken as the selling picks up momentum, as the sell pattern is quite evident and well established now.

Daily chart better shows the consolidation pattern in place. Friday's trading session found support off the .886 fib area. Look for this level to be broken eventually, as the selling pressure takes the index much lower.

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