Sunday, October 26, 2008

$INDU Update for 10.26.2008


Monthly chart remains quite bearish, with index trading well below all key moving averages, especially the 8ema. All initial downside targets have been hit, even the .886 fib level. We have now given back all the gains made since the bottom of October 2002. No buy signal/pattern evident on this timeframe.

Weekly chart shows the index trading well below its 8ema as well. While bulls managed to find initial support the week before, they were soon overwhelmed by the bears, who took back all their initial gains. No buy signal/pattern evident onthis timeframe. Look for continued weakness and eventually lower.

Daily chart shows consolidation and trading range before the next leg down. No buy signal/pattern evident on this timeframe.

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