This morning it looked like the Dow was going to crack, but the Dow continues to hold up under the pressure. So what do the internals look like? 14 components are up, 14 are down, and two are unchanged. Gains from Minnesota Mining and Procter and Gamble continue to offset losses by Home Depot and Intel. Also helping to prop up the Dow is our own Du Pont.
Du Pont Daily Chart
Du Pont had been consolidating since we started coverage on May 1st, but that consolidation has given the 50-dma time to cross above the 200-dma. DD is now poised to break the downtrend, and move closer to our target of $59. $59 may seem like an optimistic target, but we liked this stock on a slightly longer time frame, July.
Chemical Index Daily Chart
As goes the Chemical Index (CEX.X), so will go Du Pont. The CEX is approaching a major resistance test at $446. A break above this level would clear the way for DD, but in the event of a failure, the Chemical Index has an up trend and rising moving averages to help support an advance.