Saturday, January 03, 2009

$INDU Update for 01.03.2009


Monthly chart shows the year ended with December's trading session resulting in a doji candle pattern, signaling indecision between the bulls and the bears. January started with early bulls stepping back into the market. Elliott wave suggests that we could be in wave 4 consolidation/trading range before the next leg lower.

Weekly chart shows the week ended with the bulls gaining momentum to the upside, and managing to close decisively above the 8ema. Look for continued follow through next week, with the test of the key LIS of 9794.37

Daily chart shows continued strength shown by the bulls as they ended decisively above the 8ema. Look for profit-taking at the next key LIS of 9794.37. We have a possible 5 waves up into Friday's high. IF we have 5 waves up, THEN look for abc 3 wave retracement of the whole move up.

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