Evening Update- INDU,DAX,SOX,& OIH

Dow Jones Industrial Average (INDU) - Daily chart
The daily chart of the INDU illustrates that it is in a continuation diamond pattern. As you can see, the INDU hit the uptrend line at 10740 and then rallied sharply higher. I do not believe the INDU will break out until it breaks above the downtrend line and then takes out the previous high at the 11050.00 level. Target remains 1350 and perhaps higher. At the moment the indicators and oscillators are bearish but looking oversold. The INDU is the strongest gainer so far for the week. The strength in the INDU is not confirming the lows in the SPX and COMPQ.

German DAX Composite (DAX)- Daily Chart
The overseas markets continue to rally and are on fire. The FTSE, DAX and the French CAC 40 Index (CAC) continue to out perform the US markets and make new 52 week highs. The DAX is up 1.36% today at 5743.68. As you can see on the daily chart, the DAX has broken out of an ascending triangle pattern and now in a sideways consolidation. Indicators and oscillators are bullish. The European Markets continue to make new highs. This chart tells you that the place to be is in stocks and on the long side.

The Semiconductor Index (SOX)- Daily Chart
The daily chart of the SOX shows that resistance is at 559.60. The moving averages are holding up nicely in a nice bullish fan. Indicators and oscillators are bullish.

Oil Services Holders ETF (OIH)- Daily Chart
The Daily chart of the OIH illustrates that it is in a pullback off of the highs. The OIH reached it's price target and we have booked our profits in our energy stocks. The stocks are not out performing the index. The OIH is down 5% this week and I want to point out that the commodity is outperforming the stocks. That is not a good sign and is a bearish signal short term for the energy stocks. The same with is occurring in the gold sector. For now there are no picks in this sector. Sell alerts have been issued.