Here is the near-term pattern carved out by the DIA, which shows yesterday's fleeting, marginal new all-time high at 127.06, followed by a declined that has sliced through initial support at 126.35/25. Today’s weakness following yesterday’s inability to sustain new highs is a negative technical signal – albeit a very short-term oriented one. Nonetheless, let’s see what the bulls bring to the table now – if they can reverse this weakness and attempt another new high or if they appear to be at or near exhaustion.





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.