Friday’s Technical Outlook for DJIA (.DJI)

Friday’s Technical Outlook for DJIA (.DJI)

Friday’s Technical Outlook for DJIA (.DJI)

$DIA, $DJI

Thursday, US stocks extended the rally, with the DJIA and the S&P 500 closing at fresh all-time highs, as NAS Comp struggled to hold on to yearly gains.

Wall Street rose in mid-day trading, as another batch of encouraging US data, which included the PPI (producer price index), spooked the Scrooge of economic slowdown in the world’s largest economy.

The DJIA added 134 pts or 0.73% to close at 18,506.41

The S&P 500 plus by 0.53%, to 2,163.75.

The NAS Comp advanced 28 points or 0.57% to close at 5,034.06.

In the daily, DJIA holds near the close and well above its MA’s, the Momentum indicator in the mentioned frame is retreating modestly from overbought levels after the close and not than suggesting an upcoming Southside move.

In the same chart, the RSI indicator heads North around 70, in line with further gains.

Near term, the 4 hours shows that technical indicators lack directional strength, RSI remains around 80, and the 20-Day SMA keeps leading the way North, rising alongside with price and providing a critical dynamic resistance in the case of intra-day retracements.

Commentary

DJIA at 18506.41, +0.73% rallied closer to target of 18600-50. Above 18650, even 19000+ levels by the next week do not look too improbable in here. As the index shows no sign of slowing down, any 200-300 points’ correction can be used to buy more, aka buying the dip. At this writing the DJIA futures are flat with a Bearish Bias.  PE

Support marks:18,469 18,390 18,322
Resistance marks: 18,560 18,605 18,660

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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