Yesterday: “With a nicely bullish break of the upper trend line, the market is poised to go higher Tuesday.” And so it was. Yay. The market is working its way towards the next Resistance Level at 26,300 and will likely get there before the weekend. We have gained some good ground in a few days, so a consolidation Wednesday would be normal. If that happens we are almost certainly moving up on Thursday.
The Daily Chart continues to show the wide consolidation, with the market resting on 25,000 as mentioned above. The market continues to hold its bullish posture, but that could change with anything new entering the psychology of the market.
For the second day in a row, we saw a reasonably strong upward move into the Trading Range, with strength right at the end of the session. But we must continue keeping our eye on the 25,000 level. I don’t think it will be broken this week but market sentiment can turn around quickly. While it is now likely that the Market will continue higher in the wide range, This is still a news-driven situation. We have earnings and other economic factors to be considered. Frankly, I think we are in for a wild ride between now and November.