-Dow Jones Industrial Average (DJIA) prints above 20,000 for the first time today
-The higher probability patterns are incomplete and hint towards 20,600 as the next resistance level
-If prices fall, support appears near 19,700 and 19,250
DJIA finds the 20,000 mark for the first time ever today. Since Donald Trump was elected president, DJIA has zoomed higher nearly 9%. Traders are optimistic that businesses will see relief from regulation and taxes that returns money to their bottom lines.
We have been bullish the market since late June and have been anticipating the recent sideways price action was merely a short-term correction. The patterns still suggest the higher probability move is towards higher levels for DJIA.
There are a couple of wave relationships near 20,000 that were suppressing prices for the last month. One of those levels resides near 20,059 so a successful break higher opens the door for a visit to 20,600.
If prices dip, this congestion area near 19,700 is a higher probability support zone. The next level of support is down near 19,250. Below 19,250 we will begin to assess other patterns that could be in play. The higher probability pattern as we see it now is that the current Elliott Wave count is incomplete to the upside.
Join Jeremy for his US Opening Bell webinars to discuss patterns for DJIA. Register and join here.
This is a shorter-term outlook for DJIA, for an equity market quarterly forecast grab a copy here.
Dow Jones Industrial Daily Chart
Created using TradingView
---Written by Jeremy Wagner, Head Trading Instructor, DailyFX EDU
Follow me on Twitter at @JWagnerFXTrader .
See Jeremy’s recent articles at his Bio Page.
To receive additional articles from Jeremy via email, join Jeremy’s distribution list.