Chart of the day

Where do we stand fundamentally?

Like the other Indices DJIA or the so-called US30 Index which represents the blue chips, has gone higher on the back of the rate cut bets. But there is now a huge divergence between DJIA, NASDAQ, and SPX which are reaching new highs, and DJIA reversing from the high.

DJIA is consolidating after reaching the high of 40100 and reversing from the rising wedge resistance thus testing the 38500 downside resistance level. This could be a confirmation of the fifth wave top especially in the case we got a break below 38100.

Support for an upside extension and a test of 41200 again is 38000 and an invalidation level of a fifth wave extension higher is 36500. Only a confirmed break below 38200 short-term will lead to an invalidation of the new extension higher.

_{Try with a long trade entry first with a stop loss below 38200 first and a short trade only upon a confirmed break below 38200.}

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