Wednesday’s Technical Outlook for DJIA (.DJI)

Wednesday’s Technical Outlook for DJIA (.DJI)

Wednesday’s Technical Outlook for DJIA (.DJI)

$DIA, $DJI

Wall Street staged a bounce Tuesday, with the DJIA having its best day in almost 4 months, ending at 17,409.72, up by 269 pts. The NAS Comp advanced 2.12% and closed at 4,691.87, and the S&P 500 added 35 pts or 1.78% to finish at 2,036.09.

The DJIA action even on the bounce is unable to confirm a continued recovery, although the bounce after the index approached 17,000 should be seen as a Bullish indicator.

In the daily, the index has regained ground above the 200-Day MA, at 17,299, but remains far below the 20 and 100-Day SMAs, the technical indicators are recovering from oversold readings, but remain well below their mid-lines.

In the 4 hours, the index is now above a sharply Bearish 20-Day SMA, as the technical indicators head North within negative territory, approaching their mid-lines, in line with additional gains on an extension beyond 17,420, the 1st resistance.

Commentary

DJIA at 17409.72 +1.57% saw a recovery back into the range of 17200-18000 and may try to rise towards 17600-800 this week. PE

Support marks:17,351 17,299 17,242

Resistance marks: 17,420 17,494 17,553

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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