The DOW this week 09/09 - 13/09

[ChartMan]

From Friday I said the up channel support was at 8344 and res at 8530. Great call. The Phase has delivered the goods and has now gained enough strength to break out of the up channel resistance.We hit support and rallied straight up to resistance- and a tad more for good measure. Could be we are developing a bull triangle on RSI... We should be looking for support at 8500 to continue on up, and that was provided today on the 1 min charts. Maybe up to 8700 area and close the gap?

 

[ChartMan]

8500 has held throughout the day and it looks like we can move up more. Getting the channel lines correct on Phase is the secret. If I have them correct now, and its subjective and open to "adjustment as moves progress, then you can see we are in mid channel with room to move on up. RSI and CCI are now developing into bull triangles. I guess tomorrow may be stagnant as people reflect on the events of a year ago. Some say there will be a patriotic response tomorrow- a kind of sympathy vote. Who knows. Looking at the Fib. retracements shows that we have closed well above 62% and at HOD , which is encouraging. 50% usually provides little resistance or support so we could sail straight through to 38% at 8700+. We can also see that there is an H&S that formed and failed, indicating more upside.

 

[ChartMan]

I won't dwell on todays action as it was fairly dis-jointed. Suffice to say we did hit 38% and bounced right back off, ending close to 62%. Again, sailing straight through 50% mark.Looks like we'll be testing 8500 again tomorrow.....

 

[ChartMan]

We tested 8500 again...if you can call it a test, that is. A fly by may be a more apt description. If we have just developed a Bear Flag , then we are looking at a target of 7800 ish... Having said that, there is a sign of positive divergence in the recent lows of Phase. So 8230 for a good short and 8400 for an improbable long it is.

 

[ChartMan]

So we didnt get a drop through 8230, so we may be safe for a while.Could be that we are basing at 8350 adn will move back up. Taking a longer view of Phase, there is a good long term up channel developing and a clear long term RS switch on CCI, confirmed by the price sitting on downtrend support.We are not clear of the Bear Flag target until we get back up to the 8400 region. Looks up to me though, unless Mr. Bush lets the cat out of the bag, dad.