Turning Up at Key 26,300 Level.
“Once again, this level is going to be key to watch for trading decisions on Wednesday and the remainder of the week.” The 26,300 Dow level held Wednesday. In fact, the market turned up forming a nice looking saucer pattern, which is marked in the 39 Minute Chart. This is Bullish going into Thursday, but we still need to watch this important level for any kind of strong, 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, which is now in jeopardy of being broken to the downside. If it isn’t, a suggested upside move to 28,200 is possible. It all depends on whether the market is going to continue consolidating in the range marked in the 39 Minute Chart.
The 26,300 level 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. This is a Wait-and-See game as the market decides what it thinks about Earnings, the Economy, Stimulus, European Markets, the Pandemic, China and all the rest. Market participants watch Support and Resistance – reaction at these levels can easily turn an impulse move into a full-blown stampede.