The Correction in DIA Could Not End in a Better Place

If the correction is over then Technical Analyst’s will all recognize that the bottom formed quite orderly at good support. From the chart of the SPDR DJ Industrial Average ETF, $DIA, below 127 shows as support several times over the last 2 months. Each retest has occurred on increasing volume which will also excite them. Now the work is to the upside. As I write the $DIA is trading smack dab in the middle of yesterday’s candle at 128.06. But notice the large volume bar between 128.64 and 129.32. And the island top now unless it moves back above 129.93, the low from last Thursday. There is likely to be little real buying pressure until both levels are achieved. But then again, not everyone trades off of Technical levels do they? I can already hear the contrarians saying that if everyone is thinking the bottom is in then it is likely not. And they may be right. But 127 is now a level to trade against, until it is breached. That is what the TA’s have over the rest, a level to trade against.

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