Weekly DJIA through 12/27/2004

Traditional technical analysis says that you should make decisions to enter a market based on a longer term view, then trade the market with a shorter viewpoint. In this mode, I'm presenting two additional charts, the weekly chart (directly above) and then monthly DJIA chart (above this one).

From this weekly chart you see a bullish picture for the DJIA with a price target of (10493-9660)+10493= 11326 (the first two levels are indicated by blue horizontal lines on the bar chart). The price bars continue to be green, an upward sign.

Tempering that prediction, however, are the stochastics and CCI indicators below the price bars, showing a very overbought market. However, we'll see if the market makes it up to 11326 before a big move downward.