Dow Jones Broken the downward trendline!

Okay, probably what's happening is not as big an issue. The thing is that Dow Jones has been trying to break through the trendline since last week and as of yesterday it managed to cross the barrier. It is presently hovering around another resistance at 10,495, as of yesterday, it closed at 10,498.

However, whatever it is doing, it is still bounded by the wedge envelop. I suppose as a "B" wave, wedge is a right pattern. While I still ponder when DJIA is going to realize its wedge objective, it still shows potential for another leg up.


Fig 1 DJIA Weekly chart

On weekly basis, the indicators are actually up! While this is so, they are topping off. There is a higher potential of a reversal. If this is so, the action will take probably 2-3 weeks to complete.


Fig 2 DJIA Daily chart

On daily basis, it is noted that the RSI is tapering off. Probably the resistance to DJIA at 10,495 is still quite relevant.