Chart of the day

Where do we stand fundamentally?

Dow Jones Industrial Average (DJIA) futures have seen significant movements. The latest increase is driven by optimism surrounding upcoming Federal Reserve decisions, with some analysts anticipating a rate cut as early as next week, which could further boost the market. Additionally, a broader market rally, particularly in the S&P 500 and Nasdaq, has added momentum, as both indices have posted their best weekly performance in 2024

DJIA is testing the 42000 resistance for the extension in the fifth wave. A break above 42000 is opening the path for the upside continuation in the fifth upside wave to gain traction. The target is 45000 and higher.

An invalidation level of a fifth-wave long-term extension higher and a bullish cycle is 40500. As said this extension higher could lead to 45000 and 48000 targets in the medium-term to long-term if we get a confirmation of this break above 42000. Reversal however is possible and a new swing-down retrace to 37300 if we see a break below 41000.

_{Try a long trade entry with a narrow stop loss below 41200 to target 44000 and higher upon a break above 42000.}