US stock markets rally on Wednesday to test resistance barriers

Dow Jones 30

The Dow Jones 30 rallied significantly during the trading session on Wednesday, testing the 25,000 level which has been important more than once. However, when I look at the charts from a longer-term standpoint and looks as if we are trying to form a bit of bottoming pattern. If we can break above the 25,050 level, I think that the market will continue to go higher. Otherwise, short-term pullbacks might be buying opportunities, as we have seen so much in the way of bullish pressure. Every time we pull back a bit, I think it’s only a matter of time before value hunters come in and try to push. I have no interest in shorting.

NASDAQ 100

The NASDAQ 100 has pulled back a bit during the trading session on Wednesday but have seen buyers underneath the turn around and push towards the 7200 level again. That’s an area that has recently been very resistive, and I think that it might take a couple of attempts to break out above there. However, if we break above the 7200 level, the market should continue to go much higher, perhaps reaching towards the 7300 level next. I believe that the market will continue to find plenty of support underneath, especially near the 7100 and the 7000 levels. If we managed to break down below the 6900 level, the market will break down significantly and turn the trend around. In general, this is a “by the dips” scenario.

Dow Jones 30 and NASDAQ Index Video 07.06.18