The Dow Jones Average (INDU) 08-30-10

Well!  Today was diametrically opposed to last Friday in its action.   The problem is that the indicators are also opposite of where they were on Friday.  Does that bode well for an up market tomorrow?  Only the reports can tell us, and then maybe what ever the news it is interpreted as good.  There is also some very bearish sentiment out there right now.  The INDU closed the day down 14.92 at 10,009.73,  Just above the 10,000 support threshold.  10,000 has proven to be the magic number in the past.  Can it be today?  The 90 day moving average for the Dow is at 10,269 with the 200 day moving average at 10,452.  Plenty of room for a rally and not break the down move.  So far the second price objective for the move down at 9964 has held and the target price for the move down remains at 9716.  For price to move higher price would have to go through 10212 with the first price objective at 10,486.   There is still positive pressure being applied to price on the daily and the indicator on the lower time frames is over extended. 

The Dow Industrial Average (INDU) 08-25-10

After two horrendous reports this morning and the Dow dipping below the magic 10,000 level price rallied to close at 10,060.06 up 19.61 on the day.  Then came the Crude report that showed an increase in reserves and after a down move in crude it went ballistic.  It seems that no matter how bad the news the bears just can’t break this market.   The question now is can this rally continue into Labor Day?   The pressure indicator is trying to turn up and if there is any positive price action tomorrow there will be positive pressure applied to price.  Price found support at the second price objective for the retracement down at 9964.  For price to start a new move higher it would have to go through 10,232 and then the first price objective would be 10,509. 

The Dow Jones Average (INDU) 08-14-10

The Dow spent the week in decline ending the week at 10,303.15.  There is still downside pressure being applied to price.  Price found support just above the price objective at 10,221.  This level should act as temporary support.  The one positive for the Dow is that with all the downside pressure being applied that price hasn’t retraced a lot of the July rally.  There was a cycle low at 1 pm on Friday on one of the shorter cycles.  I would expect this level to hold for a while and a rally to take hold.  The one damper on this is the coming retail earnings reports which are due this coming week.  For price to restart a move higher it would have to go through 10545 and then the first price objective for that move would be 10,821, shown in green, with resistance at the longer cycle Price objective at 10,678 shown in black.

 

The Dow Jones Average (INDU) 08-10-10

Once again a volatile day with the bulls and the bears in another dog fight.   The bears had their way in the morning and the bulls led a recovery after the Fed meeting.  After that it seemed that they both took a rest and let the Dow just settle a little lower than the high of the day.

 The Dow closed at 10644.25 down 54.50.  Quite a victory for the bulls.  There is currently downside pressure being applied to price on the daily chart.  Price is still oscillating around the second price objective for the short cycle move higher at 10,674.  In order to start a move lower price would have to go through the entry price at 10,469 and the first price objective for the move down would be 10,220.  Nothing has really changed in the past 5 trading days.

The Dow Jones Average (INDU) 08-08-10

The Dow closed the week at 10,653.56.  This was a major victory for the bulls.  The bears have tried to trash this market for the past week with negligible effect.   The market was down substantially a couple of days last week and then rallied back toward the close to end up down small amounts.  Price is still oscillating on either side of price objective two at 10,673.  The pressure indicator has just crossed over and is trying to apply downside pressure upon price.  Price still has not triggered the entry price for the move down at 10,458.  If that should happen then the first price objective for the move down should be 10,206.  The next price objective for a move higher would be the short cycle price objective at 10,790.  

The Dow Jones Average (INDU) 08-01-10

The Industrial Average had quite a July.  It was nothing but up for the whole month with just a couple of setbacks.   The INDU closed the month at 10,465 up about 800 points for the month.  Right now there is downside pressure being applied to price on the daily chart and it has not yet hit the entry price for the retracement down at 10,326.  Price has been rejected twice by the short cycle price objective at 10,601.   Price found support just below the first price objective for the move down.  Price has still not taken out the previous high, but it appears to be putting in an inverse head and shoulders.  I don’t have a lot of faith in that formation until it actually does its job and breaks out.   For price to restart its move higher it would have to go through both price objectives at 10,601 and 10,672.  Right now those levels are acting as a major impediment to the price rising much higher.  If those levels are breached then the first price objective for the move higher would be 10,835.  If this rally is to continue through August those price objectives have to be taken out and a new high put in above 10,600.

The Dow Jones Average (INDU) 07-29-10

The Dow closed down 30.72 at 10467.16.  It was a hectic day for both the bulls and the bears.   First thing out of the box the INDU rallies 70 to 80 points and then proceeds to go negative by 60 to 70 points.  There was almost a 200 point range today.   After being down 60 plus points the market rallied to plus 30 and then faded to minus 30.  There is still downside pressure being applied to price on the daily chart.  Price has not hit the entry price for the move down at 10,331 and the first price objective for that move would be 10,084.  Once again the second price objective at 10,600 acted as resistance.  There should be some more volatility tomorrow when the GDP numbers come out.

The SPY and INDU for 07-28-10

Yesterday’s charts remain the same as far as entry points and price objectives.  The only thing that has changed is that the Pressure has turned down.  For the first time in 7 days we have downside pressure being applied to price.   This could project to a 4 point drop in the SPY and a 400 point drop in the DOW.  Of course the entry prices for the down move have to be hit and that hasn’t happened yet.

The Dow Jones Average (INDU)

The Dow closed at 10537.69 up 12.26.  There is still upside pressure being applied to price.  The indicator is still in the over extended area of the chart and with all that pressure price still couldn’t take out the previous high.   The lower time frames have downside pressure being applied and there is divergence at the highs for those lower time frames.   The price objective at 10,597 seems to be acting as resistance to further upside movement in price.  For price to start a retracement lower it would have to go through 10,332 and then the first price objective would be 10,082.   The 10,000 area has proven to be support in the past. 

The Dow JOnes Average (INDU) 07-25-10

The Dow closed Friday at 10,424.62 up on the day and up in the week.  There continues to be upside pressure on the daily chart.   Price went through the first price objective at 10,405 and the next short cycle price objective would be 10,598.  There is a longer cycle price objective at 10,676.  For price to start a move lower it would have to go through 10,195 and then the first price objective would be 9959.  Price is now above both the 50 day and the 200 day moving average.  The 50 day moving average is still below the 200 day moving average.