Dow Jones (DJIA) Chart – May 9, 2008

I am recharting the DJIA ($DJI) this week using a slighty different angle for the upward trending line of higher highs.  I’m doing this for two reasons.  One is to show that picking the exact points on a chart can change the story if you are a little bit off and the other is to show that the DJIA is still above the trend line of higher lows I drew last week.  Last week I mentioned some potential factors that could weigh down the markets.  Oil proved to be one this week along with AIG as the other. 

The DJIA is hitting a key point next week.  Both the longer trending downward line from last October and the upward trending line that just starting in March are hitting a triangle and could both provide support.  From last week’s chart I also mentioned that the Dow finally broke above the 13,000 mark.  I should have waited for another day closing above that mark before considering it a true break above.  Having 2-3 days close above the potential ceiling are really needed for confirmation.

Take all this with a grain of salt this week (as if you should ever treat it with any more validity).  I hurt my neck again on Friday and have been fairly doped up for the past two days and didn’t sleep much last night due to the steroid medication the doc added to fun to go pack of prescriptions.