DOW daily, weekly and monthly until April 24 2012

 Look at the Daily, Weekly and Monthly 8 and 21 MA's.When a cross between the MA's happen you see that a long trend often follows on both upside or downside. As soon as the blue 8 MA turns direction the bar rallies in that direction and often get above the 21 MA that has the opposite direction. But without a cross you see that the bars cannot hold above the 21 MA and falls back to the 8 MA. But after a cross the long trend starts. Look at the monthly chart at the bottom and you see the 2007 fall came back to the 8 falling MA until the cross came then the big fall was initiated. See the bottom at 2009 where the 8 MA turned up first and later crossed the 21 MA. Since this cross both the MA's are still moving  together up and there is no sign that the 8 MA will turn down now again. The monthly trend is up. The weekly chart in the middle you can see at the end that the 8 MA move sideways and the 21 MA rising. A drop can get below 21 MA but a cross is needed to make a down trend otherwise the bar will jump back up to the 8 MA again. Finally the daily chart where both MA's are down and have crossed so the daily trend is down. After having seen that you must look what happens with this trend in the weekly and monthly charts. This is what I tried to explain in my last blogg yesterday. Always look at the weekly and monthly charts when the daily trend moves down and you will see the options for this trend.

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