$INDU update - 07-07-2010

Strong rally today.  We have crossed back over the neckline.   If this holds in the weekly pattern, we could have a failure of the head and shoulder pattern.  A failed head and shoulder pattern is very bullish, meaning most of the sellers have already exited the market.  So we could now have a strong rally.  I would closely watch the 10,000 level for the DOW to see if we can continue to hold above it (the DOW broke to the upside in the last half hour). If we can hold this level you can easily see a rally to the 10,600 vicinity.   At least a good short term money making opportunity.