Sunday, February 15, 2009

$INDU Update for 02.15.2009

DOW JONES INDUSTRIAL AVERAGE INDEX - $INDU
Monthly chart continues to remain extremely weak. Index remains well below all key moving averages and the down trendline in place. The market has had three months to try to lift off the re-test of the October 2002 low, and yet the bulls just can't seem to manage it. No buy signal/pattern evident on this timeframe. It is looking more and more likely that we will indeed break the October 2002 low and head lower.
Weekly chart continues to look weak, with the index remaining below all key moving averages and all down trendlines in place. Despite the early show of strength by the bulls last week, they were easily overcome by the bears' selling this week, as they managed to erase all the gains made the week before. Back end support did not hold. Look for continuation lower in the next few weeks.
Daily chart continues to look weak, with the index remaining below all key moving averages and the down trendline in place. Backend support did not hold as the bears managed to take back all the gains of the prior week. Look for another run at the November 2008 low and lower in the week(s) to come.

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