Morning Update- INDU,XAU,OIH, IYR

Dow Jones Industrial Average (INDU) - Daily chart
The chart of the INDU illustrates that it has broken out of the continuation diamond pattern and is now in the process of forming a bull flag as it pulls back of it highs placed at 11159.20 earlier this year. The indicators and oscillators are in a bullish trend reversal. I do not believe the INDU will break out until it breaks above the 11050.00 level. The INDU and a lot of the stocks in it are considered safety stocks, therefore we do want to see higher prices since we own the PPH. Today the INDU is up 0.20% at 11027.99 .

The Gold and Silver Index - Philadelphia (XAU) - Daily
The daily chart of the XAU is currently a lot more bullish than the daily chart of the HUI. The XAU is currently going through an ABC correction. It is in a wave 3 of 4 correction on the daily. Should the lows from this week around 124.27.00, which is roughly a 25% retracement from the highs that would be a bullish sign because bullish markets have quick corrections. Even if 117 is taken out, which is the 50% retracement, the uptrend line would still be in tact and there would be no overlapping of waves (1) and (2). We will have to wait and see. There are no trades recommended at this time. Nothing to go long. Sit on hands!

Oil Services Holders ETF (OIH)
The daily chart of the OIH illustrates that is in a wave (3) to (4) / ABC correction. It is in a bearish trend reversal. So far the OIH has not broken the uptrend line around $130.00. We will just have to wait and see if that uptrend line holds. I expect it to trade sideways for a while. There are no setups at this time.

The Real Estate iShares (IYR)
The daily chart of the IYR is bullish. It has held it's uptrend channel and moving averages nicely. Today the IYR made new 52 week highs at 1.04%. Housing stocks should follow suit.

What is a setup?
Entry for a stock is always based or triggered upon a set up. A setup is not buying the uptrend line, because that is not a pattern A setup is a pattern that contains a geometrical shape. There is no geometrical shape in either the XAU or OIH at this time.