DIA 3 Month Chart – April 29, 2009

I charted the Dow Jones tracking ETF, DIA, at 12:26 pm on April 29, 2009. 

• DIA hit the line of most of its three month intraday highs this morning
• The one time DIA closed above this line it used it as support and then failed the next day
• DIA is trading above its 10, 20 and 50 day moving averages
• DIA is in the middle of its trading channel between the trend lines of its higher highs and higher lows
• Volume on DIA has been low for weeks

Opinion = I consider the horizontal line of resistance around $81.70-81.90 as the key point to watch.  In fact, late this morning my limit order for a bear call spread hit and I sold May 82 calls and bought May 83 calls.  If it wasn’t for that line I’d expect DIA to continue its bull run based on the trading channel and trend lines.  I won’t turn bullish on DIA until that horizontal line is crossed and DIA closes above it for at least two days.