$INDU Update for 09.07.2008

DOW JONES INDUSTRIAL AVERAGE - $INDU

Monthly chart shows that the September 2008 did not get off to a very good start. The Index remains below all key moving averages, below the January 2000 high, and also below the January 2008 low. The trading activity of the first week in September has all but erased the gains made during the month of August. No buy signal/pattern evident on this timeframe. Look for continued weakness and lower still. First downside target of interest is the .618 fib retracement level.

Weekly chart shows the the bears have regained control, taking the index back below all key moving averages and below the January 2008 low. No buy signal/pattern evident on this timeframe.

Daily chart shows the index to be stuck in a consolidation/trading range. The bulls managed to find short term support off the .786 fib retracement level. Current pattern shows a bullish gartley butterfly pattern in place. IF this bullish gartley butterfly plays out, THEN look for the first target to be at the .618 fib level, or 11,555 range.