Market Week 42
We had a busy week lately with lots of good news. Trade War is still on, despite the great deal signed on Friday. If everything related to everything is really hard to strike a deal. China Tensions everywhere again as of today. 2019 is the market of Twits. No matter what let’s see what the chart says.
Dow Jones Industrial Average
We are still in the uptrend channel and the EMA(200) was relieved by good news. We are just at the resistance of 27000. Earnings season kicked in and everyone eyeing the results. With this gap ups, this is an old-new area for the market.
I am still not convinced about this bullish scenario where we end up with new highs. The safest less risky play would be remain range bound and just stick to the averages with sideways movements.
Huge resistance area ahead I would not buy into it with huge optimism. We were here before what’s changed today?
If this is a Huge triangle we will have more to the downside before breaking up, if ever it breaks. On larger timeframes, with indices, the patterns tend to fail in my experience.
Now here comes the moneymaker again straight from the support. The king of sideways. We will have some pinball between the colored lines and again to the resistance area.
I was surprised by the movement last week but adopted accordingly. The downside feeling still lingers. The mood will remain pessimistic if Q3 were horrible for companies or the guidance becomes weaker in several sectors this could be the last try on these levels. Safe play: Sideways or not doing anything and wait for a direction.