Tuesday’s Technical Outlook for DJIA (.DJI)

Tuesday’s Technical Outlook for DJIA (.DJI)

Tuesday’s Technical Outlook for DJIA (.DJI)


US indexes surged to fresh all-time highs Friday, before ending the day flat.

The initial rally came after the release of stronger-than-expected US data, as retail sales were up by 0.6% in June, industrial production rose to 75.4%, also beating expectations.

Stocks retreated ahead of the close on news over a military coup in Turkey, with the DJIA closing Monday at 18.516.55, up by 10 pts, but the NAS Comp and the S&P 500 down by 4 and 2 points respectively.

The DJIA daily shows that, despite closing in the Red, the index managed to post a higher high and a higher low daily basis, and it is holding above its MAs, while the technical indicators have barely retreated from overbought levels, suggesting upcoming declines may be just correctives.

In the 4 hours, the benchmark holds above a horizontal 20-Day SMA, the Momentum indicator approaches its mid-line within positive territory, and the RSI remains flat around 59, indicating also a moderate downward scope in here.

  • DJIA +6.4% YTD
  • Russell 2000 +6.4% YTD
  • S&P 500 +6.0% YTD
  • NAS Comp +1.0% YTD


DJIA at 18516.55, +0.05% has paused to refresh which may continue for another session or two. The uptrend is still intact with the 1st target of 18600-50. A 200-300 points’ correction can be used to buy more for now. PE

Support marks:18,390 18,322 18,246
Resistance marks: 18,481 18,560 18,620

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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