The Dow Industrials index, or INDU, though common in the media, doesn't get as much attention from the pros. For example, daily volume on SPY yesterday 190M, QQQ 60M, IWM 53M, and DIA a lowly 10M. Futures are similar. However, from The Pivotal Perspective we need to consider the Dow as important as other indexes. Evidence all on INDU long term pivots over the last 10 years:
2006 key high in May on YR2
2007 low of year in March bang on YP, and *the top* on 2HR1
2008 major lower highs April and May bang on YP; July low on YS2
2009 *the low* on YS1 near exact
2010 key high April 1HR1, key lows May June very near 1HP
2011 major high in May on YR2
2012 highs March - May on YR1
2013 QE steroids year trend up no turns; YR2 support pullback low in June
2014 low of year on YP exact
2015 key low early February on YP exact, lows of year just under YS1 (INDU traded below YS1 for 3 days in 2015, and actually level held on each weekly close)
And since we here we are near INDU YS1 again, have to consider it as possible major support. Here's the chart. Recovery and close above YS1 15746 possibly bullish, even better to close above 1HS1 15817. Remaining below those levels definitely bearish.
Other yearly levels in play are on the RTY cash index. Similarly, possibly bullish above YS2 952, then better above 1HS2 966; definitely bearish if remains below. So, if short on IWM from late December on best trigger or early January, or reshort from 2/1-2, possible partial cover.
Also, VIX yesterday above YP & 1HP both at 27.46. So what's bullish for VIX (above pivots) is of course bearish for stocks, and vice-versa.
Lastly, oil on both continuous and current contracts on the YS1s. CL1 YS1 26.69, 1HS1 27.89.
Volume shifting into the J contract, showing the daily chart here.
Lastly, TLT and other bond vehicles (ironically, ZN futs and TYX, charts not shown) each tagged yearly levels yesterday with some rejection.
My bias is this isn't the final low for the year, but when we do have it it will be something like multiple yearly or perhaps half year levels testing and holding like potentially today.