DJIA, 2/19/08

PRICE AND TURNOVER
Close: 12,337.22
Change: -10.99 (-0.09%)
Volume: 665,333,184

MARKET BREADTH (NYSE)
Net adv/dec issues: +514
Net new highs/lows: -32
Net up/down volume: +102,917,051

OUTLOOK
The Dow opens virtually unchanged but quickly and steeply rallies to complete the intraday rounding bottom pattern that I pointed out in my last post. It did hit the 12,500 level which is just right about the price objective of the 100pt move that i said can be reasonably expected if the pattern came to fruition on an intraday timeframe. (See "DJIA 2/15/08 Weekly Market review".) Intraday movements using the 5 and 10 minute timeframes are very short term in nature and they eventually are bound to align with the bigger trend so it is not surprising to see the market succumb to profit taking late into the trading session eventually closing faintly lower and on a downtick. The intermediate trend remains valid. The short term trend appears undecided exhibiting a higher low succeeded by a lower high unfolding a symmetrical triangle. Remember that symmetrical triangles are considered continuation patterns so odds are in favor that this pattern will break in the direction of the bigger trend. In the off chance that it breaks to the upside, the next critical level to look out for will the the 12,800 resistance level.