Dow Jones Industrial Average Consolidates Near All Time Highs
Talking Points
–
Dow Jones Industrial Average
(DJIA) continues to consolidate near all-time highs
-The medium term outlook is for higher
prices
towards 19,700 and possibly higher levels
-Below 17,800 would force us to reconsider the higher probability technical patterns
Last week was a good week to take a holiday. Dow Jones Industrial Average did increase but only marginally finishing the week up less than 1%. In essence, the market continues to consolidate near its all-time highs. Previously,
we were anticipating a technical correction to hold above 18,167.
The low last week on US30, a
CFD which tracks the DJIA
,
reached 18,242.
Bottom line is that little has changed from our
previous report on July 28
. We are anticipating the medium term trend to remain higher towards 19,700 and possibly higher levels. A move below 17,800 would cause us to reconsider other higher probability patterns.
Chart prepared by Jeremy Wagner
From a sentiment perspective, the number of traders holding long positions in US30 is 5% below levels seen last week while the number of traders holding short positions has grown 5%. Though this is a subtle shift, it does point towards potentially more gains in US30 which supports the medium term outlook.
(Learn how to trade with SSI here.)
Interested in a longer term outlook for equities?
Download our quarterly forecast here
.
Good luck!
Suggested Reading:
Dow Jones Industrial Average Punches Back After Brexit Collapse
Do your losing trades overshadow your winning trades? Learn about the psychology behind why that might be happening in our
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—Written by Jeremy Wagner, Head Trading Instructor, EDU
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