Dow Jones Index 2010 Technical Analysis Weekly Training Charting Trend September Rally

Date: 9/14/2010

Dow Jones Index September Rally Technical Analysis Charting Trends 2010 Stock Market Dow Jones Technical Analysis & Market Commentary Nasdaq, S&P 500 Market Double Bear Reversal Nasdaq 100, Dow Jones Industrial Average Dow.

Pros vs cons of the bull vs the bear. During the rally we've seen some failure at 10,700 and we've seen very light volume in the month of August 2010. Going into September we were shorting mid August.

We've seen some price action and closed our shorts going into the close of August trading and bought a few 3x Bull ETFs like the TYH Ultra Long Technology. You can see on this monthly chart there is a 20 week declining moving average.

This uptrend is going to deminish when it hits the higher end resistance. We've seen the 20 week moving average cross over below the 10 week and also the 50 week moving average. As these moving averages seperate the trend and momentum will weaken.

This is because you can't have declining monthly moving averages and movement to the upside. We look at things that work, like when you have 20 week moving average ascending these are great trades and you can see how we continued to rally higher. The weekly moving average are going in the right direct, they're ascending. It's important to realize we failed that rally because the 20 week moving average started to decline.

The weekly buy signal is still there but lets talk about sustainability of trend momentum and price-action momenutm. We're going into a major earnings season, growth is much slower. The problem we're having is that it's been a light volume short cover rally. We're very cautious on this trend line. Above 10,469 is bullish however we're in the middle of an options expiration and it's after the options expiration. The earnings season is going to be lower growth, we're going to be watching for a reversal. We'll take the calls and puts on this expiration and analyze the put to call ratio. Double daily buy signal but you're overbought on your MACD readings. 10,612 is the neckline trend. A charts a chart but there are different mathematical trends that come into play. Once the cycle takes it's course, we'll see where that buy and seller is.

We've bucked the trend in the first 2 weeks in September we haven't seen a September move like this in 60 years. Taking the short interest off takes these indexes higher, it's my experience that after the shorts cover that's we we're going to look to see if we collapse. I haven't seen a trend yet that have been able to maintain these types of scenarios. We'll be looking at undervalued "Bear ETFs" going into the future and you can stay tuned for that.

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