INDU Dow Industrials (fka $INDU)

[ospreyeye]

$INDU Chart: Red Alert - the DOW closed below MA(200) @ 15469.68.........

If you've been following my $INDU analysis you were prepared for this drop.........when the DOW closed below MA(100) @ 15790.90 on Fri. I knew MA(200) was on deck........check my analysis.......CALLED IT!.......

OK so now we are here.......the moment of truth for the DOW.........the drop from16600 to 15372 is the type of % drop all the experts were looking for..........well, here we are........and MA(200) support broke.......in a big way........take a look @ the 2nd week of Oct........$INDU hit MA(200) support & bounced.......on Mon. MA(200) support was hit & it broke.........major change in trend........now look @ the Volume.......today's carnage was on Massive Vol.........not a good sign if you are a bull........Mon. was the largest vol. day since Sept. for the DOW........& on Sept. 20th the Massive Vol. day signaled the Start of a major pullback.........

Today's close on the DOW was extremely Bearish.......Fast Sto, Full Sto & RSI are @ Oversold levels........many of the Indicators are signaling Extreme Oversold.........I would expect a bounce.......the key is will it be a short cover rally or sustainable?.........the answer will be found when MA(200) resistance is tested.........that's right, MA(200) was support, but it is now resistance..........& above that MA(100) is resistance.........a ton of overhead resistance for the DOW.......may see a bounce off 15300........solid Market Maker level.......

If the DOW closes above MA(200) the chances are MA(100) will be the selling zone.........the DOW couldn't look more bearish.........remember, there are a ton of Inverse ETF's.......you can play the "dark side" by going long in an INVERSE ETF.............$$$