Dow Jones Chart – January 23, 2009

Today I charted the Dow Jones Industrial Average ($DJI or DJIA) for the first time this year and once again I see that the Williams %R indicator is the one we should be watching every day.  On January 6th, %R broke below overbought.  That was at the peak for the DJIA for the previous two months and could hold as the peak for weeks, if not months, to come.  The Dow fell more than 1,000 points since then and only found support around the low from November 13th.  That November 13th low didn’t hold and our next line of support is down at the November 21st area just under 7,500.