Moving on Up. Watch for Reversion Friday.
” It appears the market is making a move to the top of the wider channel at 27,600, which is our next objective.” We continued towards the top of the middle range Thursday. Basically, there is a fair amount of accumulation going on, but we have come too far in the past 5 sessions, which is why I am expecting a pull-back Friday. But clearly, the market is making a move to that upper line.
The market is slowly taking ground, and if it 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 Friday but then a renewed upside push
DJIA – Daily
There is some good news out there that could be bolstering the market at this juncture. Since we finally broke through key Resistance at 27,000 we can now hold a bullish posture unless that line is broken again to the downside. 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. Then, watch 27,000 as a “circuit breaker” to the downside.