PrimoTenore's Blog : Wow, finally breaking through 8,000

Howdy, PrimoTenore!

That was looking like a really solid ceiling at 8,000.///It put in a nice run as support, too. Back in December, and again in February, the index really held up just above 8,000 for a good stretch.///Now we've been flirting with busting through it to the upside for three weeks. Is today the day it finally breaks through? Or is this inertia at 8,000 in both directions an indication that this is where the market wants to stay for a while?

Bearing in mind I do not routinely track the Dow Jones Industrial Average (http://www.zacks.com/research/report.php?type=main&t=$DJI">$DJI) in my work, I note it has closed above the 8,000 level six times this month, as follows:
-- Apr 3: 8,017.59
-- Apr 9: 8,083.38
-- Apr 13: 8,057.81
-- Apr 15: 8,029.62
-- Apr 16: 8,125.43
-- Apr 17: 8,131.33

Ergo, I find nothing noteworthy in the DJIA's behavior vis-a-vis the 8,000 level today. Of course, I find nothing noteworthy in any index's performance vis-a-vis any absolute level on any day. Here at the home office of the completely fictional Druids Investment Group -- Can You DIG It? -- my focus is on relative metrics (e.g., simple moving averages [SMAs], the relative strength index, the Chaikin money flow indicator).

In my assessment of all these metrics in association with the DJIA, I believe the index's current relationship with its 13-week SMA on http://stockcharts.com/h-sc/ui?s=$INDU&p=W&yr=3&mn=0&dy=0&id=p66979473444">its three-year weekly chart best encapsulates my beliefs with respect to its direction in the short term:
-- If the DJIA closes today above its 13-week SMA (i.e., 7,675.02), then I think there is a high probability it will continue to trade either sideways or upward next week.
-- If the DJIA closes today below its 13-week SMA (i.e., 7,675.02), then I think there is a high probability it will trade downward next week.

Good luck!

MackTheKnife

Sounds SMArt to me!

Howdy, PrimoTenore!

Sounds SMArt to me!

Hey! You stole almost one-half the typography of my new advisory service based on crossovers of simple moving averages: SMArta$$ Trader!

Good luck!

MackTheKnife

Primo,

I hope your reading 3J's blogs... were having some fun.

Cheers

OwlTrades