# Report for the Five Major Stock Indices

Below is an explanation of the three windows of the charts and a description of each of the indicators.

In the top window is my **internal strength indicator
(represented by a bold blue line)** this measures the strength
of the security in relation to its movement between the upper and lower
3^{rd} alpha wave bands.

The internal strength indicator is considered overbought above minus twenty (-20), and oversold below minus eighty (-80). In addition to the internal strength indicator there are two other indicators. The thin blue indicator represents the value of the last time the internal strength indicator reversed direction to the downside. The thin red line represents the value of the last time the internal strength indicator reversed direction to the upside.

In the middle widow the Long/Short position is indicated, one (1) represents
a long position, minus one (-1) represents a short position. A zero (0) represents
a neutral position. The **Bold blue line** is
for long term traders and the thin red line is
for short term traders.

In the bottom chart the main trend line for a security is the **Alpha
Trend** this is represented by **the bold
red line**. It is from this trend line that all other support/resistance
lines are developed. The Alpha Trend is an adaptive moving average that
uses proprietary mathematical formulas to create the base line movement
of the selected security. From the Alpha Trend, I then created three separate
progression/regression price areas using Fibonacci ratios, which I call
the 1^{st} Alpha waves, 2^{nd} Alpha waves and 3^{rd} Alpha
waves. It is these three wave areas that define the vast majority of a
security's price movement. Moving out from the Alpha Trend, the 1^{st} Alpha
waves are represented by the **dark blue lines**.
This is the price range that a security will normally move to once the
Alpha Trend line is crossed in either direction. Next are the 2^{nd} Alpha
waves which are represented by the **light blue
lines**. It is this area between the 2^{nd} Alpha waves
where 79.82% of the time a security's price will remain. Last are the 3^{rd} Alpha
waves which are represented by the **violet lines**.
Once a security's price reaches this area it is in an extreme overbought/oversold
condition. A security can stay in this area for awhile, but this usually
represents a poor price in which to place a trade in the prevailing trend.

The next four moving averages are the one year moving average of the Alpha
Trend represented by **the bold violet line**.
The timeframe for this moving average is the following, on the daily chart
it is 240 trading days, on the weekly chart it 52 trading weeks, and on the
monthly chart it is 12 trading months. The next moving average is the short
term alpha trend line represented by the **bold black line**. The next moving
average is a simple moving average of the lows when the internal strength indicator
is trending up. This moving average is represented by the **Bold
Blue line**. The last moving average is a simple moving average of
the highs as the internal strength indicator is trending down. This moving
average is represented by the **Bold Green line**.

DJ TRANSPORT

The current short term traders' position is Long.

The current long term traders' position is Long.

The current sell price for short term traders is 4,141.1064

Long term traders' stop loss price is

The Current trend is bullish.

The Alpha Trend is trending up.

Today's closing price is 7.2336 percent to the support price of Alpha Trend.

The Alpha Trend Support price is 3,861.3738.

The one year moving average of the Alpha Trend is trending up.

Today's closing price is 13.5758 percent to the support price of the one year
moving average of the Alpha Trend.

The one year moving average of the Alpha Trend Support price is 3,645.7502.

The internal strength indicator is trending up.

The Transports are topping out
here traders should not take a long position at this level. When the internal
strength indicator turns down this will be a good time to go short.

DJ TRANSPORT

Weekly

The current short term traders' position is Long.

The current long term traders' position is Long.

The current sell price for short term traders is 4,137.8325

Long term traders' stop loss price is 3871.64

The Current trend is bullish.

The Alpha Trend is trending up.

Today's closing price is 12.3510 percent to the support price of Alpha Trend.

The Alpha Trend Support price is 3,685.4929.

The one year moving average of the Alpha Trend is trending up.

Today's closing price is 16.3408 percent to the support price of the one year
moving average of the Alpha Trend.

The one year moving average of the Alpha Trend Support price is 3,559.1050.

The internal strength indicator is trending up.

The DJ Transportation is still trending up the next resistance price is 4243.44
which is the upper 3^{rd} alpha wave band traders should take their
profits at that price.

DJ UTILITY

The current short term traders' position is Long.

The current long term traders' position is Long.

The current sell price for short term traders is 400.3317

Long term traders' stop loss price is 391.55

The Current trend is bearish.

The Alpha Trend is trending up.

Today's closing price is 0.8957 percent to the support price of Alpha Trend.

The Alpha Trend Support price is 392.9405.

The one year moving average of the Alpha Trend is trending up.

Today's closing price is 6.9368 percent to the support price of the one year
moving average of the Alpha Trend.

The one year moving average of the Alpha Trend Support price is 370.7423.

The internal strength indicator is trending up.

The DJU is trending up the next resistance price is 407.91.

DJ UTILITY

Weekly

The current short term traders' position is Neutral.

The current long term traders' position is Short.

The current position is neutral.

Long term traders' stop loss price is 399.55

The Current trend is bearish.

The Alpha Trend is trending up.

Today's closing price is 0.7735 percent to the resistance price of Alpha Trend.

The Alpha Trend resistance price is 399.5504.

The one year moving average of the Alpha Trend is trending up.

Today's closing price is 13.9172 percent to the support price of the one year
moving average of the Alpha Trend.

The one year moving average of the Alpha Trend Support price is 348.0248.

The internal strength indicator is trending down.

The DJU appears to be bottoming here if the DJU can't close above the Alpha
trend it will continue to trend down.

Dow Jones Industrials 1900-99

The current short term traders' position is Long.

The current long term traders' position is Long.

The current sell price for short term traders is 10,795.5303

Long term traders' stop loss price is 10701.36

The Current trend is bullish.

The Alpha Trend is trending up.

Today's closing price is 2.7540 percent to the support price of Alpha Trend.

The Alpha Trend Support price is 10,477.7422.

The one year moving average of the Alpha Trend is trending down.

Today's closing price is 2.3302 percent to the support price of the one year
moving average of the Alpha Trend.

The one year moving average of the Alpha Trend Support price is 10,521.1387.

The internal strength indicator is trending up.

-23.51

The Dow's internal strength indicator is in overbought area, the next resistance
price is 10779.31 traders should take their profits at that price.

Dow Jones Industrials 1900-99

Weekly

The current short term traders' position is Long.

The current long term traders' position is Long.

The current sell price for short term traders is 10,790.8145

Long term traders' stop loss price is 10509.92

The Current trend is bullish.

The Alpha Trend is trending up.

Today's closing price is 2.4394 percent to the support price of Alpha Trend.

The Alpha Trend Support price is 10,509.9209.

The one year moving average of the Alpha Trend is trending up.

Today's closing price is 3.0703 percent to the support price of the one year
moving average of the Alpha Trend.

The one year moving average of the Alpha Trend Support price is 10,445.5850.

The internal strength indicator is trending up.

The Dow is still moving up the next resistance price is 10941.55.

NAS/NMS COMPOSITE

The current short term traders' position is Long.

The current long term traders' position is Long.

The current sell price for short term traders is 2,234.2808

Long term traders' stop loss price is 2206.80

The Current trend is bullish.

The Alpha Trend is trending up.

Today's closing price is 4.1616 percent to the support price of Alpha Trend.

The Alpha Trend Support price is 2,138.0918.

The one year moving average of the Alpha Trend is trending up.

Today's closing price is 6.9237 percent to the support price of the one year
moving average of the Alpha Trend.

The one year moving average of the Alpha Trend Support price is 2,082.8591.

The internal strength indicator is trending up.

The Comp's internal strength indicator is in overbought area the next resistance
price is 2243.05 traders should take their profits at this price.

NAS/NMS COMPSITE

Weekly

The current short term traders' position is Long.

The current long term traders' position is Long.

The current sell price for short term traders is 2,232.7747

Long term traders' stop loss price is 2142.73

The Current trend is bullish.

The Alpha Trend is trending up.

Today's closing price is 4.4262 percent to the support price of Alpha Trend.

The Alpha Trend Support price is 2,132.6743.

The one year moving average of the Alpha Trend is trending up.

Today's closing price is 9.1533 percent to the support price of the one year
moving average of the Alpha Trend.

The one year moving average of the Alpha Trend Support price is 2,040.3143.

The internal strength indicator is trending up.

The Comp is still trending up the next resistance price is 2238.29.

S&P 500 NDX Continuous

The current short term traders' position is Long.

The current long term traders' position is Long.

The current sell price for short term traders is 1,252.1279

Long term traders' stop loss price is 1237.86

The Current trend is bullish.

The Alpha Trend is trending up.

Today's closing price is 3.1171 percent to the support price of Alpha Trend.

The Alpha Trend Support price is 1,212.4076.

The one year moving average of the Alpha Trend is trending up.

Today's closing price is 4.1369 percent to the support price of the one year
moving average of the Alpha Trend.

The one year moving average of the Alpha Trend Support price is 1,200.5348.

The internal strength indicator is trending up.

The S&P 500 is still moving up but is near the overbought level. The next
resistance price is 1251.94.

S&P 500 NDX Continuous

Weekly

The current short term traders' position is Long.

The current long term traders' position is Long.

The current sell price for short term traders is 1,251.4950

Long term traders' stop loss price is 1214.62

The Current trend is bullish.

The Alpha Trend is trending up.

Today's closing price is 2.5174 percent to the support price of Alpha Trend.

The Alpha Trend Support price is 1,219.5002.

The one year moving average of the Alpha Trend is trending up.

Today's closing price is 5.9519 percent to the support price of the one year
moving average of the Alpha Trend.

The one year moving average of the Alpha Trend Support price is 1,179.9689.

The internal strength indicator is trending up.

The S&P 500 is still trending up the next resistance price is 1275.33.

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