Saturday, June 28, 2008

$INDU Update for 06.28.2008


Monthly chart shows that the past week's trading activity made a new low for the year. The index is now below not only the January 2008 low, but also the January 2000 high. So far, the market given back all the gains made in 2007. The uptrend line in place has now been broken. Eventual initial downside target remains at the .618 fib level.

Weekly chart better shows the strong selling pressure that came into the marketplace. This week's trading activity decisively took out both the March 2008 low as well as the January 2008 low. So far, we have made lower high in May 2008, where the bears came out in force.

Daily chart shows the strength of the bears as they sold off hard the last two days of the week. The corrective pattern that has been in play since the March 2008 low has now finally played itself out, with making a new low, as initially predicted. Index is now below all its key moving averages. While the indicator suggests that the index is oversold, there is no buy signal as of yet.

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