$INDU Update for 10.19.2008

DOW JONES INDUSTRIAL AVERAGE - $INDU

Monthly chart shows the market has retraced not only to my initial target of the .618 fib level and the .786 fib level, but now to the .886 fib area. Aggressive buyers stepped back into the market, as evidenced by the bottoming tail on the current candle pattern. While there is initial buying at the 8000 level, there is no confirmed buy signal/pattern evident on this timeframe.

Weekly chart shows this week's trading activity resulted in consolidation. While the aggressive bulls stepped back into the market, they were soon overcome by bears towards the end of the week, as evidenced by the topping tail on this past week's candle. No buy signal/pattern evident on this timeframe.

Daily chart shows the index to be stuck in a consolidation range/pattern. On a short term basis, there is a buy signal in place, but price action looks to be corrective. Look for continued consolidation before the next leg down.