Sunday, August 31, 2008

$INDU Update for 08.31.2008


Monthly chart shows that the bulls managed a weak higher high over the month before, but they did not manage to close the month above the key LIS of 11,750.28, which is the January 2000 high. No clear buy signal/pattern evident on this timeframe. Index remains in a bearish trend for now.

Weekly chart shows the difficulty the bulls face in getting any traction to go higher. The bulls were unable to close the week above the January 2008 low, which is a key short term LIS (where old support becomes new resistance).

Daily chart shows profit-taking on Friday into the Labour Day long weekend. There was probably some window-dressing and re-balancing of portfolios in anticipation of the fourth quarter of 2008. Index remains rangebound. Is the index tracing out a small wave 4, with a higher high to complete five waves? Or is the top made in August, and we continue lower once again? Only time will tell.

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