Powered Up; Meeting New Resistance
Friday, the Dow pushed back through Resistance, which of course was very bullish. This surprising move up tells us the market sees value at these low levels. Now we are at the next resistance point of about 26,100 and will be watching that level Monday.
The Daily Chart continues to show the wide range, with Long Term Support at 25,000. We have the sub-range marked (25,500 to 26,300), which is operative right now. We rallied to within 200 points of the top of this range Friday.
Looking again at the Daily, we see the long, narrow range at the bottom of the wider range. Any time you have a consolidation at low, that is bearish overall. Of course, the market showed a lot of strength Friday. But this could be a “head fake”. We need to get above the lower consolidation (top at 26,300) for an indication that the market is indeed going to power higher. Watch resistance at 26,100 early Monday.