December E-mini Dow Jones Industrial Average futures hit a record high during the pre-market session. This signaled a resumption of the uptrend because it
December E-mini Dow Jones Industrial Average futures hit a record high during the pre-market session. This signaled a resumption of the uptrend because it took out the previous top at 22389.
The new main bottom is 22174. A trade through this bottom will change the main trend to down.
The buying is strong so the only thing investors have to worry about is a potentially bearish closing price reversal top. A trade below 22346 will create this chart pattern.
Friday’s close at 22346 is essentially intraday support.
On the downside, the first support is the short-term uptrending Gann angle at 22334. This angle has been guiding the market higher since September 25.
If this fails then look for a break into the major uptrending angle at 22291. This angle is very important because it has been guiding the market higher since August 29.
The first sign of weakness will be a break under 22346. The next sign of selling will be a move under 22334. A serious shift in momentum will occur if 22291 fails as support.
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.