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.
Click here to join our free mailing list for a taste of our unique market insight/foresight. To join our premium newsletter and receive our premium content, send us an email from the “contact us” page here and we will send you the subscription link with all the details.