$INDU Update for 11.02.2008

DOW JONES INDUSTRIAL AVERAGE - $INDU

Monthly chart shows that the bears have managed to erase about 89% of the entire gain since the low was made in October 2002. October's trading session indicates that aggressive bulls stepped back into the market as the October 2002 was being tested. The index remains well below all key moving averages, especially the 8ema. The index also remains below a down trendline in place. No defined buy signal/pattern evident on this timeframe.

Weekly chart shows the current support at the 7897 area to be holding, with the bulls managing to end the week well above its open. Index remains below all key moving averages at this time. Index also remains well below the down trendline in place. Price action indicates possible consolidation pattern/trading range is possible. Look to next week's trading activity to determine whether this is the case or not.

Daily chart shows a buy signal/pattern being made on Tuesday of last week. While the bulls managed to make an impressive gain on with Tuesday's trading session, they soon encountered resistance and selling pressure from the bears during the remainder of the week. Current resistance is at the October 14, 2008 high. Bulls need to come in and take this market significantly higher in order to confirm the short term buy signal/pattern. IF there is no sharper upside momentum next week, THEN look for continuation lower after consolidation pattern completion.