DJIA - End of Rally?

DJIA has been in a price rally since reaching a bottom in Mar 09. Is the DJIA rally about to come to an end? Let's look at the charts.

Monthly chart w/e May 07, 2010

Monthly chart shows DJIA has retraced 61.8% of prior decline (bear trend) from Oct 07 to Mar 09. MACD Histogram and stochastic oscillator have turned down but the monthly bar for May 10 is still not complete. It took DJIA 17 months to decline. The rally is now on the 14th month.

Weekly chart w/e May 07, 2010

Weekly chart shows a bearish divergence between price and MACD. The slow stochastic oscillator has also turned down from the overbought zone. These are negative sign. I expect DJIA to decline for the next few weeks or so.

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