DOW rallies hard after a valiant effort from the bulls

Index Analysis DOW JONES

Time Frame : 4 Hourly

DOW JONES Index

DOW bulls fought back overnight from the previous few sessions selloff in a valiant effort after the US Fed Reserve lean towards and interest rate cut. Price run straight up into a resistance zone around 25400 taking out some stops above 25325. Price is stretched up at current levels and the bulls would have to put in a big effort to move the action higher without at least a pullback. We will be watching to see if sellers can squeeze out some late buyers and then will be focused on what will happen next. Bears still have a strong case for lower levels but rate cuts may be just what the bulls need for a run higher. Best action for now would be the sideline in the US to see how it plays out.

Index : Dow Jones Futures

Current Price : 25382

Status : On watch for a potential short squeeze through to new highs

Alert History

Previous Alert 8/05/19

Index Analysis DOW JONES

Time Frame : Daily

DOW JONES Index

DOW bears have had a bit of fun the previous few sessions being helped by Trumps comments Sunday that the US will raise tariffs on China imports. Price was hovering around resistance at 26718 so the news was a good excuse to squeeze out some buyers to potentially setup another run higher. The key level we see is now at 25325 which is the major anchor to the leg up. The coming few days will be the tell to which way the market will go and if China come to the table with some concessions, then expect no raising of tariffs and a strong bounce back within the channel. Of course, if the tension increases, then all bets are off and sellers will come out to play and potentially drive price through 25325…then things may get ugly.

Index : Dow Jones Futures

Current Price : 25988

Status : On watch for a potential short squeeze through to new highs