DIA – Dow Industrials ETF (Last:170.04)

Developing DIA pattern couldThe bullish pattern shown could yield an entry opportunity with the potential to leverage a Dow rally of as much as 600 points over the next week or so. I’ve discussed this in detail in the E-Mini S&P analysis immediately below, but I want to provide an equity-  or option-based alternative for subscribers who are not set up to trade futures. Although the impulse leg in this instance did not surpass the required ‘external’ peak, we’ll set aside the rule because the rally is so clear and compelling in the S&P chart. Note that there is no ‘buy’ signal here, at least not yet. The pattern is still unformed, with a point C low that is only tentative so far. We’ll continue to monitor it closely, however, since it could get us aboard a big move with relatively little entry risk. Tune to the chat room for further guidance in real time. _______ UPDATE (March 1, 7:48 p.m. ET): Because there were no reports from subscribers having taken the trade suggested above, I have not established a tracking position. There was a second entry opportunity toward the end of the day when DIA pulled back to the 168.20 midpoint pivot shown in the chart. My minimum objective is 169.82, the secondary pivot, but D=171.44 would be in play if 169.82 is decisively exceeded. ______ UPDATE (March 11, 2:20 a.m.): This morning’s bull-trap, gap-up opening came within 4 cents of the 171.44 target I’d said would be in play if 169.82 were exceeded. There was no tracking position for this one, however, since no subscribers reported taking the trade. DIA will come off the sheets on Monday unless I hear from someone who got short near Thursday’s peak.