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[dalcindo]

Re: $INDU- BEARISH; Target: $8,500.00

Hi, Lang!

$INDU has come under significant bearish pressure. In fact, 2 overhead resistance elements are likely to act as iron-clad obstacles for this index. The first one corresponds to the 50% Fib level borne out of the decline between OCT 2008 MAR 2010. The second one is the indice's own weekly 200-EMA.

Additionally, evaluating the recent H&S formation of this index over the period of NOV 2009 to today, one may reasonably project the technical target for this expected bearish trend to rest at $8,500.00, which - if anything - gains further weight as a whole psychological value. But, most importantly, note also that this target rests right on the line that was once defining the neckline of the inverted H&S formation.

It may take some time to see the completion of this technical development, if ever. But, however speculative this may be, it does seem possible that the trend will bring us down there, in one form or another. A break below the current neckline would likely unleash a crowd of bears, IMHO:


$INDU - 5-Yr., WEEKLY Chart:



- Dalcindo