The Situation

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Since we made almost a double bottom technical pattern (January 20 2016
and February 11 2016) on the Dow Jones Industrial ​Average ETF DIA, we are
​into a higher highs and higher ​lows technical pattern ​in a multiple up steps...
​​(See 1rst Chart Below)
​
​​But we broke on April 25 2016 a steep rising wedge and are since then in a
tiny correction wave well into a downtrend channel.​
​​​(See 1rst Chart Below - Channel)

We closed below the 50 DMA (Day Moving Average) at 176.52 on  the DIA ETF 
​on May 17 2016​ ​​​(See 1rst Chart Below - Red Line - Ellipse),  but most ​importantly,
​still ​above the 200 DMA since March 11 2016.​​ (See 1rst Chart Below - Green Line)

The DIA ETF is back testing the prior Break Out Line (now becomes a Major Support Trendline) that started back since the ultimate peak in price reached​ on May 20 2015. It becomes critical for Bulls to protect that Line for the DIA ETF as it need to stay above.​ ​​(See 1rst Chart Below - Red Trendline - Ellipse)

But what puzzle me the most is that, testing that Major Support zone on that DJ Industrials ETF, the Trading Volume is quite on the low side... ​​​​(See Chart Below - Bottom Right -  Blue Area)

As we are testing that Major Support Trendline, in fact Bulls failed to break yet on a relative basis (ratio of DIA ETF over SPY ETF) the Resistance Line that started back since December 2011 as shown by the second chart below.​​ ​​​(See 2nd Chart Below - Ellipse).  Welcome to the Battlezone Challenge for Bulls.



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