See Yesterday’s Commentary!
“Consolidating at highs is precisely what should happen in a Bullish market. But we are also watching for a break of that upper line, which would be even more bullish and a great buying opportunity – short term.” We have basically the same situation as yesterday, with the market forming a very nice trend line at the consolidation highs, which was reinforced today.
“Marked on the 39 Minute Chart are the 2 possibilities for tomorrow – Continued Consolidation or Break. If we drop through 27,600 however, that would be quite negative.” Again, since the market moved sideways to down along the line we drew yesterday, it is in the same stance going into Friday, with some nice, clear action lines indeed!
DJIA – Daily
I have the same comments to add today – we should see a move back to 27,600. If we break it, that’s bearish. If we move up through the last 2 session highs immediately (about 28,000), that’s bullish. It’s really about as simple as that from my experience.
While nobody can predict what will happen in the months ahead, we can definitely play off these levels day to day. And the upper trend line that is there now at 28,000 a “doosey.” Watch for breaks at 27,600 and 28,000 or for a continued pull-back to 27,600 and a bounce off that line. These action levels should set us up well for Friday trading.