Options Wonderland

[dalcindo]

Re: $INDU - BEARISH

Hi, Thegreatgate!

I very much like your chart! Thank you for sharing it.

When looking back at my own $INDU chart, I am considering the following:

1 - RSI tapering off at the 50-level as it nears its resistance line;
2 - Price validating and re-testing its down-trend line;
3 - Price reaching the significant 50% Fib retracement level;
4 - The formation of a "pre-decline pattern" in the oversold set of secondary indicators (CCI, W%mR, CMF)
5 - PPO's histogram leveling off
6 - ADX losing steam at a level where DI(-) is about to cross over DI(+), it seems that the chart is favoring a down-turn.


I agree that the DOW has been very healthy in the recent rallies, lending to believe that a bullish continuation is possible, but for the technical reasons listed above, I continue to consider the outlook BEARISH, until that technical moment, when price breaks ABOVE its current 2-year old+ downtrend.

I believe that in order to take down this strong technical hurdle, it will require much more bullish fundamental news than has been trickling from the FED's and world markets recently, IMHO.


$INDU - 10-Year, Monthly Chart:



- Dalcindo