27,600 Becomes the New Support Level
“The question is whether the market can continue to gain ground after moving 1,300 points in the past 5 sessions.” With a little bit of prodding, the market did in fact move above 27,600 today – establishing that as the new Support Level.
“If the market can get through 27,600 (the upper resistance line) it could continue to the long term Resistance line at February highs.” So here we are. Again, the market has come a long way since the 26,000 Support Level, which is why I think it will consolidate for a while before making its next move.
DJIA – Daily
We have come nearly 1,800 points in less than a few weeks. And it’s been a very steady, orderly ascent. The market is digesting a lot of news right now, and apparently sees it as overall positive. Especially now that we are above the medium term Resistance Level, we can keep the same positioning, looking for weakness in specific stocks and sectors to play the reversions.
Just remember – markets do not go straight up. It would be very unusual for a continued move up from here without a retracement. Not saying it can’t happen, just that it would be very unusual. Look at all the recent moves – few have progressed as long as this one has. We are due.