Out of the Slump??

By TheWild1 at 12 August, 2008, 1:06 am, Categories : Financial Markets

We have seen a few great rallies over that last couple of days. Are we out of the woods, or is the market just toying with our emotions?

Looking at a 1 year time frame, we can see the obvious downtrend the Industrial Average (INDU) has experienced; however, what is that abrupt move upwards at the end?

Is it just another dead bounce? Getting us excited before heading even lower or is there really some substance there?

In this market, it is almost too unpredictable to make an accurate decision, but we can try and eliminate the risk.

Lets pick out what we have going for us:

On the move upward, we saw a good size volume
The INDU has broke past the 50 day moving average (orange)
The INDU sits right on the edge of the break after a 6 month resistance

So we have a couple good things going for us. At least enough to hold us for the next couple of months. Until we have cleared the 200 day moving average (red), it will be hard to say if we are in the clear or not.

Are we poised for 14000 or 10000? Nobody may know, but we can at least have our fun for now.

INO - Check out their free trend analysis of the INDU