Dow Jones is making a of the longer term pitchfork resistance. Intermediate trend remains bullish. Short term trend is bullish, what about longer term? One of our followers has asked me about the very bearish scenario of a broadening top in Dow. Of course it is very possible as shown below that Dow is forming that kind of pattern. However, even if this is the current pattern, we should expect prices to make new all time highs in order to reach the upper blue trend line connecting A and C. That price level would be the target for final wave E. After that wave has completed, prices according to this pattern would decline much further, making the 2008 bear market look like a walk in the park.
The 12884 low is a very important inflection point for the up-trend. The rising pitchfork support should hold for prices to maintain their upward momentum. Short term support is found at 13600/575. If prices pull back downwards, they should pause any decline inside the 13450-300 area.
As always, thank you for taking the time to catch up on my thinking.
A price movement through an identified level of support or resistance, which is usually followed by heavy volume and increased volatility.