DOW Chart

The DOW posted a 9th inning surge to close just a hair above the channel trendline we've been following on the daily chart. So far it's holding and as long as it does the charts are still telling us we're slowing moving up. A break of that trendline to the downside and I'm going to treat it as a red flag and watch with caution. When the RUT had a simple break of it's trendline we ended up with a 12% avalanche. The charts are great at giving us clues as to what's really going on and it's often that the clues are there, we just have to really look for them and then trade them if we have set ups and rules to take advantage of them.

DOW 6 Month / Daily Chart