Dow Jones Industrial Average
The technical resistance for a bounce stands in the 23769 area for now. The 2017 closing was 24719.22 and the 2017 high was 24876.07. A lower closing for 2018 will warn that the market is entering 2019 weak. A closing for the 31st below 23344 will signal that the market is still weak and can test the 21495 area at a minimum. A month end closing below 22416 will warn we should see a further decline to retest the 20000 level.
When we look at the S&P500, we see that the 2017 high was 2694.97 intraday. The 2245.13 was the 2017 low. The Monthly continued bearish warning at 2683 implies a marginal decline into early 2019 A closing at or below 2595 implies a test of the 2404 – 2452 level or lower.
We will need a closing above the Daily Bullish Reversals (24058 Dow and 2574 S&P500) to raise any hope of a further rally into mid-January. Failing to accomplish that by Monday warns of a retest of the lows at a minimum.
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