Range 26,300 to 27,000. Watch Support
“…For Monday, it’s rather straightforward – watch for a break or bounce off Major Support at 26,300. I personally think it will bounce and head towards the top of the range.” We did hold at Support Monday, turning up into a saucer formation that suggests a move to the top of the range at 27,000. But we need to continue watching Support at 26,300 for a downside break.
Looking at the Daily Chart, we see that the range which has formed over the past few weeks is a narrow Consolidation itself, generating a projected range target of about 28,500. Therefore, the “way to bet” is for an upside move – unless we break 26,300 to the downside.
With the low volatility and orderly movement, I still say the market is waiting for something. The chart is fairly clear in predicting an upside move towards 27,000 Tuesday. I keep emphasizing the 26,300 level because it is such a clear Support line in the Dow chart. If it breaks through, that will indicate severe weakness has suddenly entered the market, and a move down to 25,000 is then fairly likely.