[Soultrader]

Its good to keep an open mind and constantly change your bias as the market condition changes. Markets change every single second. That is why it is hard to tell anyone whether to go long or short. I can might change my mind and reverse my position a few minutes later.... so watch out when getting a second opinion.

Just by taking a quick glance at the daily chart, we are in a very interesting spot. August 18th's price rejection may not be a legitimate one. on August 18th, price broke out of the key resistance at 11400. The following Monday on August 21, the markets gapped down below 11400 and never filled the gap.

This information led me to believe that we may not be able to break that crucial 11400 level. The entire week from August 14 - August 18th, we saw higher value placement. During the week from August 18th - August 25th, we saw price trade in value (consolidate) and lower value placement.

However, we had a significant rally yesterday with a higher value placement and decent volume. This rally was important for prices to remain above the trendline and respect it. We are also forming an ascending trianlge pattern. Price is trading above the 8, 21, 50, 100, and 200 period moving average. Technically speaking, price says that we have a good chance of going higher.

If you are looking to swing trade the dow, buying the breakout of the August 18th's high with a stop 10 points or so below 11400 looks like a decent opportunity.