Chart of the day

Where do we stand fundamentally?

DJIA did not entered bearish territory on the latest sell off and stood fundamentally better as blue chip Index then the Indices that have tech stocks in them. This means that there is more upside space for DJIA as there is a rotation in portfolio with big investors.

DJIA is bouncing from the LT upside support 38400. For an extension higher in the fifth wave we need to see a break above 40800 level. A break above this level can lead to an extension higher to 43800.

An invalidation level of a fifth wave long-term extension higher and a bullish cycle is 35600. As said this extension higher could lead to 43800 target in the medium-term to long-term upon a confirmed break above 40800.

_{Try a long trade entry with a stop loss below 38000 to target 41000 and higher. You can trade with the options as well.}