Reaching Resistance at 27,600
The Dow continued slightly higher Friday, putting it within striking distance of the important 27,600 level. We note a small range throughout the day, which finally pushed upward in the last hour. This indicates some accumulation ahead of Monday, which is a bullish sign. The question is whether the market can continue to gain ground after moving 1,300 points in the past 5 sessions.
DJIA – 39 Minutes
If the market can get through 27,600 (the upper resistance line) it could continue to the long term Resistance line at February highs. Since we have come 1,300 points in 5 sessions, I am expecting a reversion off this level on Monday, which could turn into a consolidation at highs, or a pull-back to the 38% Retracement level at about 27,000.
DJIA – Daily
Thursday I felt the market had come too far and would likely revert near this important Resistance Level. The market is digesting a lot of news right now, and apparently sees it as overall positive. We can keep the same positioning, looking for weakness in specific stocks and sectors to play the reversions.
Ed Downs
