Dow Jones Industrustrials - At Key Resistance

We are at key levels in several of the major indices so I thought it might be a good idea to post a few comments regarding what I am seeing in the Dow Jones Industrials right now.

Lets start with the big picture...   Above we have a weekly chart of the ETF for the Dow Jones Industrials (DIA). As you can see this market is testing major resistance which was established last spring.

Now lets zoom in a little by taking a look at the daily chart. Today was an interesting day as the market has put in a bearish engulfing pattern. As we all know, this is a reversal pattern and suggests that the market may begin to move lower or at the very least  move sideways for awhile. What makes this bearish engulfing pattern significant is that it is taking place at major resistance.

Note also that volume was good across the board today for most of the major indices with DIA showing its best downside volume in weeks.

There is also an uptrend line that appears to have been broken which adds further confirmation to the bearish view.

Summary: The fact that this market is at major resistance, bearish engulfment, good downside volume and a break of the uptrend line suggests that lower prices may be expected in the weeks ahead. A move above today's high would obviously negate the bearish outlook.