Heinz: Here is the INDU chart.
beta.iqc.com
The current triangle with its declining volume through the pattern (the spike from last week was option expiration related) has a bottom slightly under 10,500. That was approached yesterday. It may be approached again today. If we break through that bottom, there will probably be a little cup forming at about 10,200 - 10,300. Without going back to the chart, I am guessing that the apex is at about 10,700. So if we drop out of the triangle, we should get another shot at puts around 10,700. Of course, the decline out of the triangle may be confirmed at the apex by the failure to move through it too.
If the volume is strong on the up-move, then I will not worry about the puts.
We are dancing on the pinpoint. Everything depends on patience, correct reads, and the willingness of the big money to make a decision--one way or another.
I used the above chart because it shows the breakout from the ugly formation around the beginning of March. When the real move started, we had the increase in volume. |
