I noted last Wednesday that, for the first time since April 7th, we had broken the uptrend. It was subtle, but it was important, because in my estimation it would mutate the role of the trendline from that of support to resistance. It has done so beautifully, even at the height of this morning’s strong opening.
The charts above and below are of the DIA, which is the ETF of the Dow Industrials. The trendline is plainly broken, and the next goal is to breach the short-term horizontal support at 456.48:
This role change isn’t confined to the DIA, however. It is widespread. Below, for example, is the much larger and more important SPY, which has the exact same circumstance.
