Time for another analysis.
For today we will talk about the Dow Jones Index.
So far the index has been on a surprisingly strong rise due to macroeconomic stability and good earnings from US companies.
So far doomsday sayers have been wrong again and again after every high was achieved by every the 3 major indexes.
Now let’s take a look at today’s chart after the closing bell on Friday.
I’m using the US30 chart which tracks the Dow Jones Index (DJI).
Friday price reached a high above 22,000 which the media is cheering about a new record breaking new high.
Based on experience, whenever the media cheer about a new high being broken, there is a likelihood that there will be a huge price sell down and I’m always on alert when that happens.
There’s a likely price rejection above the 22,000 mark. Price hasn’t drop to 22,000 yet. But don’t care about how exact the price is. There is a buffer zone.
We shall see if the sell down is a change of trend.