$INDU Update for 07.13.2008

DOW JONES INDUSTRIAL AVERAGE - $INDU

Monthly chart shows the index is well below all its key moving averages, the up trendline in place, and also the high made in January 2000. The market is retracing the whole move up off the October 2002 low. First downside target remains at the 10,000 level, and the second target will be 8,700 area. No buy signal/pattern on this timeframe.

Weekly chart shows the first downside target at the 1.27 fib area has been hit. Index is well below all its key moving averages on this timeframe, and remains bearish. Next downside target is the 1.618 fib level of 10, 692ish. No buy signal/pattern evident on this timeframe.

Daily chart shows the index made a new low on Friday, after continued bad news about Fannie Mae, Freddie Mac, and the failure of IndyMac. Index remains well below all key moving averages as well as the down trendline in place. Upside resistance now is at the key LIS (old support becomes new resistance) of 11,634.82 which is the January 2008 low. No buy signal/pattern evident on this timeframe. Look for continued weakness and much lower over the weeks/months to come.