Sunday, September 28, 2008

$INDU Update for 09.28.2008


Monthly chart shows the index remains below the key LIS of 11,750.28, 34ema and the 8ema. Index is also under the January 2008 low, which is a smaller LIS (old support becomes new resistance). No buy signal/pattern evident on this timeframe.

Weekly chart shows bottoming tails as aggressive buyers stepped back into the market. Despite the aggressive buying, the index managed to close lower than it's open for the week. The index remains below the down trendline in place, below the 34ema and the 8ema. No buy pattern evident on this timeframe.

Daily chart shows a short term buy signal/pattern evident, as the aggressive bulls managed to take the index back above the July 2008 low. The bulls managed to close the index back above the 8ema. The market is retracing the last leg down from 11,483.05. First resistance target is the .618 fib and then .786 fib level. Look for continuation further on expectation that the $700 Billion U.S. bailout plan will be announced.

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