In a volatile week with huge swings, the Dow Industrials ETF (DIA) returned to Wednesday's gap with another 10% move. The magenta lines on the 30-minute chart show the zigzag indicator, which measures movements that are 10% or more. As you can see, there was an advance greater than 10% on 12-13 October, a decline greater than 10% on 14-16 October and an advance greater than 10% on 16-17 October. Wow, what a week for day traders. There was a day when these swings would look impressive on a weekly chart. Obviously, this is not your father's Dow.

With these big swings, the Dow Industrials ETF (DIA) remains stuck in a volatile range and short of a breakout on the daily chart. I am watching two items to signal a trend changing breakout. First, the pullback on Tuesday-Wednesday established key resistance around 99. Mondays' surge was impressive and Thursday's recovery affirms support, but we have yet to see follow through and a resistance breakout. Second, the Commodity Channel Index (CCI) moved below -100 in early September and momentum remains bearish overall. At the very least, CCI needs to break into positive territory. However, I would like to see a surge above +100 to show some real strength and turn momentum bullish. Be sure to check out the corresponding video for more details.

There is also a video version of the this analysis available at - Click Here.

Chip Anderson
About the author: is the founder and president of He founded the company after working as a Windows developer and corporate consultant at Microsoft from 1987 to 1997. Since 1999, Chip has guided the growth and development of into a trusted financial enterprise and highly-valued resource in the industry. In this blog, Chip shares his tips and tricks on how to maximize the tools and resources available at, and provides updates about new features or additions to the site. Learn More
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