The Indoos tripped a ‘mechanical’ buy signal last week that I neglected to mention. We can use it nonetheless to inform a bullish bias in the weeks ahead, as the blue chip average makes its way toward the 27,125 target. If you did the trade on your own, you should have taken a partial profit Monday on half the position at p=26,594. A further 25% should be taken off at p2=26,860, and thence 27,125 for the remainder. The corresponding HP levels for DIA lie, respectively, at x=263.27, p=265.96, p2=268.63, and D=271.32. _______ UPDATE (May 7, 10:07 p.m. ET): The upturn at day’s end has continued into the evening, but the salvage attempt appears doomed because the intraday low breached a clear Hidden Pivot. This has negated the 27,125 target given above, but a rally touching 26107 would generate a new one at 27060. _______ UPDATE (May 8, 9:01 p.m.): Today’s rally slightly exceeded 26,107, generating a new bullish target, but the move was too feeble to be even the least bit impressive. Get ready for a relapse.
