Friday, March 06, 2009

$INDU Update for 03.06.2009


Monthly chart remains very bearish with index well below all key moving averages and the down trendline in place. We have broken through the Key LIS at the October 2002 low and now old support becomes new resistance. No buy signal/pattern evident on this timeframe.

Weekly chart shows the bears have the upper hand, taking the index down to a lower low. The bears also managed to close the week near its low. No buy signal/pattern evident on this timeframe.

Daily chart shows the bears took the index down and hit my two downside targets. Friday's session ended in a spinning top/doji candle pattern. Aggressive bulls found short term support right off the 1.618 fib retracement level. After such a strong down move, we are overdue for some consolidation/trading range action.

No comments: