DOW Jones Update

130501 DJI

The support line from Dec 2012 first broke in April, then got retested. It hugged the trend-line for 6 straight trading days and now appears to be leaving it, the so called ‘kiss goodbye’. The first area of support is around the 14500 area, which has a lot of accumulated volume. This is visualized using the ‘volume cloud indicator’. For an explanation see here. So it is very well possible that this support level is not immediately broken, but will be tested first. If this is indeed the case, the situation will be similar to the projected AEX move, described here. But sooner of later, the 14500 level will break and the DJI will go to the next level around 14000, which is ’round number’ support and also volume cloud support.