Chart of the day

DJIA is pulling back for a previously broken flag resistance retest 32700. A confirmed break below this level could invalidate the fifth wave extension higher and would lead to a breakdown lower.

This is still viewed as the long-term five-wave upside and a fifth wave needs to be confirmed by a bounce from here especially with a break above 35000 if we get there.

Long trades should be opened upon a possible test of 32700 and a bounce from there. We favor the long trade entries at this stage as we see an ongoing price action to continue higher in the fifth wave to finish the large cycle. Short trades could come only upon a confirmed break below 32700.