Chart of the day

DJIA is testing the falling wedge resistance of 34530. A bounce higher from here is required for another test of the critical upside resistance of 35400 for a continuation higher in the possible long-term fifth wave.

This is still viewed as completing the medium-term fourth wave pullback of the five waves upside long-term if we get a bounce from here and a break above 35400. A break below 34200 is now required for a downside reversal and an invalidation of the possible upside reversal. A break below this level will confirm that the upside five waves are finished.

Long trade, you can open here with a stop loss just below 34200 if you are more risk averse because this is not a clear direction. You can only open short trade entries in the case of a confirmed break below 34200 if you got stopped out. We favor the long trade entries as we expect an upside extension from this vital support at the rising wedge.