As mentioned in the previous post, the 17770 price level was a key level for the Dow. A close below it would have triggered lower lows. However, the Dow could not close below it on May 6th and followed up with a rebound to the upside both yesterday and today.

Today’s price action took out the stop losses of the conservative short positions with a small profit. We are now waiting for the next setup.

At the time of preparing this note, the Dow has poked through the key 18125 level. A close above 18060 today would be considered very bullish.

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