9/6 Thursday

$13340 is a short-term resistance that could play out as critically important.  Because last two times when we hit that price point, this thing tanked.  Last early May, we tanked for whole month after hitting that price point. And of course last time we hit that point 8/21, we’ve gone through DREADING Bearish run.

I want $DJIA to close above that price level with good looking white candle before totally on-board with bullish on the market.

If or when that happens $13,650 is the 1st target and $14,100 is the all time high which would be our 2nd target.

Bollinger Bands (up top) looks great! Little bit of squeeze were happening and today bands are spreading apart strengthening this bullish move.

Because we had this dreading bearish run last 2-3 weeks, STOCH had chance to completely RESET! We got PLENTY ROOM TO MOVE BULLISH THERE.

RSI is technically approaching overbought territory but as long as the trend continues, it can hang out there.

MACD has rested well and ready to go back up.     LOOKS BULLISH ON OSCILLATORS.

Parabolics = Just flipped to bullish side suggesting bullish move is ahead.

DMI = Bulls line pointing up

ADX (MOMENTUM/STRENGTH INDICATOR) = HAS LOT OF ROOM TO MOVE.  When this thing moves, STOCK MOVES VERY STRONG AND FAST!   You can see that last two months, we really haven’t had solid move (with channel and up and down moves, we really didn’t find momentum. Thats why you see ADX is just flat in the bottom).  As we start to find some trend here, this thing will start to move showing the strength in the trend.

FAST STOCH= BULLISH with lot of room to move.

S&P 500 we closed above our major pivot area of $1425!

However Uptrend Channel resistance is closing in to watch out but definitely very bullish on S&P500!

If this thing continues, $1500 is our next target, resistance from Ma 2008 peak.

*CONCLUSION*

I think we might be setting up for a NEW BULLISH TREND. We must have good looking bullish candle tomorrow or next week to confirm that.  Because we had this last 2-3 weeks of slow bearish run, that helped our indicators/oscillators to reset and now has lot of room to move bullish building whole new momentum.

9/10 Monday – Early reversals Nothing confirmed

Everything else still looks bullish.  We are only seeing some early bearish (possible reversals) with candle charts.

Next few days will be very crucial to see where we are going as a whole.

$DJIA and $COMPQ more concerning because of those early reversal signs at RESISTANCE.

These are just EARLY SIGNALS but nothing has confirmed. Will update later.

9/11 Tuesday – $13340 resistance ($DJIA)

OOh so dang close from breaking above that $13340 resistance. This is a very crucial price point we must overcome and close above with solid bullish candle to find some momentum here.

Today we closed with Tweezer bottom which gives us just a little bit of bullish hint but then again yesterday we had bearish engulfing so really we are just moving sideways.

I just need $DJIA to close above that resistance level with good white candle to really can say that we are heading for a new high which is around $13600.

But for now, still caution is at hand that it could reverse for short-term bearish movement and pull back down to that uptrend channel bottom support area.

9/12 Wednesday ($DJIA)

we don’t close above that resistance level we ain’t never going BULLISH. We need a good looking bullish candle that (at least 30% of its body) closes above that resistance.

Today we closed with a shooting star reversal candle formation.  Well this is a early reversal signal but looking at the size of the candle, I wouldn’t put much weight to it… but just slight bearish sentiment is appearing.. but nothing confirmed yet.   Overall still bullish and no major reversal signs or data have been found.

9/13 Thursday ($DJIA)

WOW! We moved about 200 points in just one day reaching our target just in 1 day! Absolutely fascinating and perfectly good for us as we had 8 bullish positions!

Well as you can see we got good volume so definitely strength is there. You can compare it with the rally we had recently and almost identical volume increase.

So around $13,950 is the next target and ultimately we want to get to the all time high of  $14,200.

BUT before we get there, we got couple things we need to do.

First we need to break this major major pivot area from Dec.2007.  I doubt its going to continue tomorrow or early next week but we will fizzle with it, flirt with it, fall from it, and test it before going bullish.

We could have little slow down like we had this week or it could be a fall back down to $13,360 area.

We just don’t have enough data to know. nothing is confirmed at this time except the fact we are at a major major resistance.

We got beautiful bollinger break and this suggests that we are very very bullish on Dow Jones.

Stoch = Bullish got lot of room to move.

RSI = Initially at overbought territory but still pointing up, we can probably squeeze little more before it retraces

MACD = ofcourse crossing, very bullish , and PLENTY room to move upwards.

Forget about other indicators on this image but let’s focus on ADX (strength/momentum indicator = one of my favorite indicators to look when I want to determine it’s trend strenght).

As you can see every time when ADX move above 20 line, this thing shifts to next gear.  It moves!

And thats where we are at right not… just hitting that 20 line on ADX. If we can close above that 20 line on ADX, I think Dow Jones will shift into next gear for our next target!

But for now, all I can say is that expect slow down or a pull back.  how much? not sure yet at this moment.