It will have to test the previous high first. We might see a breakout from this ascending triangle. So the resistence is at 12,845 and then 13,000 if it breaks out.
Tag Archives: Indu
Uptrend broken
Dow Jones Industrial has broken its uptrend line. It will likely test the major support area at 12,000.
Tuesday’s big drop was the first in a few years.
2006 Year end review
In 2006, RUT performed the best followed by INDU and S&P 500. QQQQ recovered the 10% loss from the mid-year and ended up more than 5%.
Both QQQQ and RUT are in the overhead resistence levels, only INDU and S&P 500 broke out. INDU is at all-time high and S&P 500 is about 100 points away from its all-time high.
Passing 12,000
12,000 is at the rear mirror now. INDU has been strong in the past two weeks. Even though it’s in over-bought territory, INDU has the momentum to reach higher at year end rally. The mid-term election was over, the market did not over-react to the new political landscape in Washington.
Marching to 12,000
It looks rather symetric on this quarterly chart. What’s ahead of us after 12,000? It looks like a double top so it may pull back for a while before moving ahead.