Dow Jones is comfortable above 26000 which was a key level. The was gap up has happened in the last session is the indication of strength. It is now above 50 EMA which is another sign of strength. With RSI above 52, we are in bull phase as of now. Next resistance expected around 26700.
Short below the red line for a 1000 point downmove.
Go long above the green for a 1000 point upmove.
In today's age of advanced technical drawings and analysis. I have decided to stick to the absolute basics. Will keep posting such charts for reference.
The price action in global equities has been interesting lately and we are at a fantastic inflection point.
There are multiple triggers to support reasonably big move in either direction and traders would do well to take a notice.
My bias is on the downside but as I explain in the video, yours doesn't have to be.
Watch the video for short term targets
Most overbought ever...at least till 1970's
If that's not enough please humor me.
What's funny is everyone in the mainstream is defending. Including Warren Buffett.
And this is the response from Cliff...
I have been tracking the DOW JONES weekly chart from the last couple of months when it started showing consecutive green days regardless of global factors, earning reports, etc.
So what intrigues me out of the weekly chart is the hastiness of the DOW towards the upper band of what appears to be a forming RISING WEDGE.
DOWs rise recently has been crazy to say...