Here is the picture of the coil pattern as it applies to the Dow Diamonds ETF (DIA), which shows that today's upside continuation of Friday's rally has positioned the price structure above the February resistance line, and just below key near-term resistance at 125.00. My near and intermediate-term work indicates that a new upleg started at Friday's pivot low of 121.56, within the January-February recovery period that should propel prices to test a more important resistance plateau at 128.00 next.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.