DJIA the three possibilities

djia july 21 2010 3

This is 1-2, 1-2, 1-2 scenario. You cannot trade above 10400 or so. This is like the blue one on the SPX

DJIA july21 2010 2

This would be the most bullish temporarily, it is similar to the purple one on the SPX

DJIA July 21 2010 

This is the most “elegant”, you can trade to 10400 + where you hit the trend-line, a little higher is possible but not by much. All told this is probably the best scenario. It is similar to the red one on the SPX. Shown below once again for pedagogic reasons.

SPX JULY20 2010