DJIA Rebound or Breakdown

22 Jan 2009
DJIA plummet stop by the dual support intersection of the green major previous resistance turned support channel and the upper blue channel band.

25 Jan 2009
Inverted hammer faltered after an unsuccessful attempt to breakout above the pink resistance box.

26 Jan 2009
Doji managed to move slightly higher up the pink box.

27 Jan 2009
Potential hammer falls into the green channel but was able to close above the blue channel.

28 Jan 2009
Potential hammer was not confirmed as sudden drop resulted in a breakdown below the upper band of the blue channel.

29 Jan 2009
A flight back to the upper band of the blue channel was shot down and a rapid collapse down into the green channel closed with an inverted hammer.

The first rebound attempt as indicated by the red arrow has failed. The next few days will continue to exhibit high volatility. A breakdown below the milestone 10000 will pulled DJIA towards the 9700 bear zone.

However, if the pink resistance box is taken out by an upthrust wave there is a chance of a second peak forming and probable double top formation.