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April 1, 2005

Technical trading alert, April 1, 2005 12:08 PM

Although I usually focus on trend and cycles studies for the technical analysis I do, I also am a believer in the importance of some chart patterns, such as support and resistance lines.

The current Dow 30 chart (10,457) is showing where chartists are focused. Should the Dow 30 support at 10,360-10,400 be taken out, then it may be a free fall to well below 9,800.

The possibility of a 9,800 cycle point that I previously wrote about is becoming increasingly likely. I'll review all the charts for tomorrow's Week #13 in Review article.

There is still almost four hours to go today, so the picture will get clearer later.

I note that Ford March sales are down 1.7 pct, whereas DaimlerChrysler's were up 7 pct. In about an hour GM will post their numbers. These numbers of course will be grist for the mill.

Posted by Posted by Bill Cara on April 1, 2005 12:10:38 PM | Category: Trend & Cycle Phases , U.S. Dow 30