US indexes kept rallying this Monday, with the DJIA adding 80 points, to end the day at 18,226.93, not far from its all-time record close, and the S&P advancing 0.34% or 7 points to close at 2,137.16, a new record high. The Nasdaq Composite surged 0.64% or 31 points, to 4,988.64. The dominant positive mood among investors, based on hopes of fresh stimulus coming in Europe and Asia, added to the latest strong US economic data, and speculation that the Federal Reserve will remain on-hold for longer. Technical readings in the Dow's daily chart point for a continued advance as the Momentum indicator heads north almost vertically, whilst the RSI indicator advances around 63, as the index extends its gains far above its moving averages. In the shorter term, the technical stance is also bullish, with the RSI indicator consolidating around 70, the Momentum indicator heading higher within bullish territory, and the 20 SMA presenting a strong bullish slope well below the current level.
Resistance (daily close): 16931.22, 17111.30, 17268.53 and 17640.00. Breaking of the latter would give 17971.78, 18230.63, 18358.32, 18626.38 and 18732.20 (published on January 06, 2014).
Support (daily close): 17190.46, 16920.42, 16853.00, 16605.19, 16200.00, 15930.00 (added on December 14, 2015). Then follow 15744.30, 15491.20, 15108.78, 14754.38 и 14406.23 (published on January 06, 2014). After 14406.23 there will be a chain of 13 395.94, 13 162.60 and 12 937.40. Then 12 506.84, 12 397.40, 12 214.70, 12 116.25, 11 913.40 and 11 864.53.
Breaking of the latter will give 11 694.36, 11 593.13, 11 328.75 and 11 131.87 (published on May 18, 2007, upgraded on January 24, 2013). Then follow 9630.33, 9358.35, 9090.00 and 8912.62 (published on November 10, 2009).
Dow Jones index is ranging in its all time high levels. Quite close to oversold status. I expect a downturn reversal breaking a support at 19814 by the end of the week. 19965 is a strong resistance level.
Impacted by Trump's win in the US elections, the index is traded close to all time high levels now. I think it will continue the bullish movement until the 19870 historical resistance and then reverse down to a support at 19170 until the end of the year.
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