Dow Jones Industrial Average - August 21, 2010
The Dow Jones Industrial Average (DJIA) and the S&P500 daily charts continue to show weakness for the last 10 trading sessions.
The earnings seasons was mixed and is now over and the market is looking to other economic indicators of the economy. Most of these indicators, such as jobless claims, continue to be pessimistic.
The DJIA and S&P500 charts both have multiple formations going on at the same time. The predominant short term trend is a upwards channel. Many times these are bearish and can break to the downside quickly.
An argument can also be made for an inverse head and shoulders. A break about 10,750 on the DJIA or 1,125 on the S&P would be a confirmation of this pattern.
We will see what the next week brings.
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