A View from the Swamp - INDU
As I noted in my previous post, the DJIA has been in a very clearly defined trading channel since April. That said, I've got a Sto sell (only the 5th one of 1999), a BASIC sell, and a MACD sell. The daily chart tells me that the projected bottom is about 10,700, or a potential decline of 3.5%.
The weekly chart is, as usual, much more significant. I show the short-term channel at about 10,560 x 11,370, or about a 7.7% range, which I judge to be reasonable. More interesting, the UTL since mid '97 is now being utilized as the LTL. This TL support is currently at about 10,750, while I reflect the grand TL to be about 10,200.
Keeping in the two Pivot Points mode, I reflect some short term support on the lower end at 10,830, and the upper Pivot Point at 11,370. The risk is certainly still to the downside. However, one must consider that the upside (11,370) is penetrated in a parabolic blow-off. In this case, I project the upside potential at 12,490.
This is going to be an interesting week.
the Tidy Bowl dude |
