“What is most important is how strongly the market rallies off 25,000 or breaks through.” We had a nice rally off this Support Level today. There wasn’t any “big” Fed news – just strength from the bounce of 25,000. With a nicely bullish break of the upper trend line, the market is poised to go higher Tuesday.
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.
Anything can happen in this market. Today, we saw a reasonably strong upward move into the Trading Range, with strength right at the end of the session. This indicates the market is generally positive. However, we know that on any given day, this market can shed 1,000 or more points on negative news. So we have to continue keeping our eye on the 24,750 level. I don’t think it will be broken Tuesday but market sentiment can turn around quickly.