Chart of the day

Where do we stand fundamentally?

DJIA Blue Chips Index did not go to a new high as the SPX or NASDAQ as their rally was and is still driven by the tech sector rise. But as the economy is improving despite the higher rates and especially on the back of the rate cuts expectations which will help the industry and retail DJIA has the biggest potential for gains.

DJIA is pulling back from the high of 40200 and pulled back in the fourth wave making a sym triangle consolidation. A bounce from here and a confirmed break above 39500 will lead to a test of the upside resistance 40200 the most important for this quarter

Support for an upside extension and a test of 40200 again is 38400 and an invalidation level of a fifth wave extension higher is 36900. Only a confirmed break above 40200 after the bounce from 38400 is required for a continuation higher.

_{Look for a long trade entry with a stop loss below 38400.}