Jan 24

Dow Exhibiting Bullish Form

by Mike Paulenoff, Wed January 24th, 2007

Not surprisingly, all of the action in the Dow Diamonds (AMEX: DIA) off of Monday's low at 124.38 into this morning's high at 125.64 has carved out an upleg that exhibits bullish form, which warns me that the recent decline from 126.10 to 124.38 represents a minor pullback within the still-viable post-July uptrend. My expectation now is for the DIA to pause prior to another thrust to new highs above 126.10. Let's keep in mind, though, that Monday's low at 124.38 represents the bull-bear line in the sand, which if violated should trigger sell signals and downside acceleration towards 123 support, on the way to 121.
Chart

Mike Paulenoff is author of www.MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial!