Sunday, November 30, 2008

$INDU Update for 11.30.2008


Monthly chart remains bearish, with the index well below all key moving averages. However, the index finished off the month of November 2008 with bottoming tails, indicating short term support at the March 2003 lows.

Weekly chart shows early bulls stepped back into the market last week. There is also regular divergence in the cci indicator, together with possible 5 waves down into current support. IF we have 5 waves down, THEN look for a retracement of the entire 5 waves. Upside target is at the .382 fib level of 9612.38.

Daily chart shows the bulls managed to pull the index back above the 8ema. Look to next week's trading activity for pullback and test of support to enter long.

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