Dow Jones Update.: Be quick or be dead

A slightly worrying development for bears. On the 50x3 closing chart we see that the Dow Jones has captureed all of the losses seen towards the end of June and early July. We had a column of thirteen X's that reverved in to a column of five 0's and gave an unactivated upside price target of 11,650. This has now been activated by the current column of X's - the filling of the 10,400 box created a double top buy signal. The minor bearish resistance line has been punctured and note that the previous resistance level of 10,450 has also been taken out.

The slow stochastic (89) is getting towards eye watering levels and volume may be low, but this chart is suggesting further upside.

A bit like the 50x3 FTSE P&F, the less noisy 100x3 closing chart gives a slightly different picture. We already have an activated upside target of 13,100 in place and also an active downside price objective of 8,100. The recent filling of the 10,500 box does give a double top buy signal, as the current column of X's has moved above the previous column of X's at 10,400. I'm just slightly wary that this column (of five X's) was completely taken out by the next reversal column of seven 0's. It makes for a weaker signal in my opinion.

Keep an eye on the short term (red) bearish resistance line. Still holding and could be tested around 10,600. We could potentially see the market reverse, find support and set up a move higher. If the current column of X's reverses now (300 point move required) you would have an unactivated upside target of 12,100. A reversal back up and a new column of X's rising above 10,600 would bring this in to play. For now, the current column of X's is the one to focus on.