Analyzing the Diamonds Trust (NYSE:DIA)

The Dow Jones is at a pivotal point right now as the current price for the Diamonds Trust, Series 1 (ETF) (NYSE:DIA) is resting on the lower trend line for the bullish price channel (blue line) and also is also resting on the 50-day simple moving average (orange line).  From a technical standpoint, investors should be expecting a bounce up because of the support from the trend line and the moving average.

Another standpoint to consider is the 85-day moving average which was an optimized outlook posted by Bill Luby.  Luby has reviewed different timeframes and found that the 85-day moving seemed to fit the current market trends best.  He suggests either strong support at the 85-day moving average line or a price breakdown similar to the one this last July if the price for Diamonds Trust, Series 1 (ETF) (NYSE:DIA) pierces the moving average line.  You may view his article/chart here.

Then there is the unknown author, Sold At The Top, from SeekingAlpha who provides a nice little comparison of the current market to the 1929 Great Depression.  The author compares current market as the S&P 500 (key the SPDR S&P 500 (ETF) (NYSE:SPY) ) but it is still relative to our discussion of the Diamonds Trust, Series 1 (ETF) (NYSE:DIA).  The comparison shows the relativity of the current market bounce to the one of the Great Depression, and subsequent further decline of the Great Depression.  You may read the article and view charts here.