Saturday, August 23, 2008

$INDU Update for 08.23.2008


Monthly chart shows bulls are holding onto current support, however, they haven't managed a close above the January 2000 high. Index also remains below the 8ema and the 34ema as well. Look to lower timeframe charts to determine whether the market is tracing out a consolidation pattern or not.

Weekly chart shows bulls struggling to take index higher. They managed to close the index right at the 8ema and the January 2008 low. However, it remains well below the 34ema. Index need to close decisively above the the January 2008 low in order to get much higher.

Daily chart shows the difficulty facing the bulls as they struggle to take the index higher. Looks like wave extension in wave 3. The last down move has 3 waves (abc), and it now looks likely that market is consolidating before the next leg higher. The minimum target would be a test of the current August 2008 high. Only time will tell.

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