Wednesday’s Technical Outlook for DJIA (.DJI)

$DIA, $DJI

Tuesday, Wall Street is so far ignoring the recent Fed rate hike concerns and moved sharply higher, with the DJIA +213 pts or 1.22% to finish the day at 17,706.07. The NAS Comp advanced 95 pts and closed at 4,861.06, and the S&P 500 rose 1.37% to end at 2,076.06.

A deal between GoPro (NASDAQ:GPRO) and Red Bull to collaborate on content production and distribution fueled sentiment, with GPRO advancing 4.86% on oversold technicals, the Red Bull deal will not save the company.

The technical picture for DJIA

The daily shows that the index has risen above its 20-Day SMA for the 1st time in 2 weeks, and the technical indicators have turned a bit higher, and still within Neutral territory.

In the 4 hours, the Northside seems more constructive, given that the 20-Day SMA has accelerated its advance far below the current marks, and the technical indicators have turned higher near overbought levels, after a limited Southward corrective movement.

Commentary

The possibility of DJIA now at 17706.05, +1.22%, bouncing to 17750-800 was discussed here Monday, that materialized Tuesday. Despite that boost, the index needs to see a clear break above 17800-950 to signal the end of the correction.

Support marks: 17,682 17,610 17,533
Resistance marks: 17,760 17,848 17,915

Stay tuned…

  correction, DIA, DJI, DJIA, Dow, GPRO, index, Neutral, Red Bull, resistance, support, technical

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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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