Chart of the day

DJIA is breaking above the strong upside resistance of 35700. This break is leading higher in the extended fifth wave to the 37200 target. A rejection here and a break below 35700 again will leave the downside swing in the fourth wave to retest 34760 as a probability, but a lower one.

I see this still as a fifth-wave upside not finished and a break above 35750 is confirming that. We need to see a clear confirmed break below 35500 for the upside fifth wave extension to be invalidated short-term which at this point seems not a high probability as the support for an upside continuation is strong.

Long trades could be opened here with the stop loss below 35500. Short trades should be opened only in the case of a confirmed break below 34000. This is a key resistance breakout.