Defending The Trend

DJI weekly action almost exactly traversed the previous week's 655 point range except to give the bears an edge by providing a slightly lower high and scant lower low. Given the large amount of data coming out in the week ahead and Bernanke testimony before the Senate on Thursday, there will be enough action to continue the struggle to build a base. The DJI continues to hold onto the best of a powerful trend which began in the mid nineties. Bears contend the current 14% decline from the October 11th highs is just the beginning of a retracement of the DJI when it sat at just over 4000 in 1995. The bulls rest on the top of a trend which technically has had little damage and will be best defended they believe by attrition as the economy works through current events.