Chart of the day

Where do we stand fundamentally?

• Market Volatility: The DJIA has experienced fluctuations due to various factors, including inflation concerns, interest rate changes, and geopolitical tensions.

• Earnings Reports: The performance of individual companies within the DJIA can significantly impact the index. Recent earnings reports from major corporations like Apple, Microsoft, and Goldman Sachs have influenced the index's movements

• Inflation Data: Recent inflation data has shown mixed signals, with some indicators suggesting a slowdown in price increases, while others point to persistent inflationary pressures.

• Federal Reserve Policy: The Federal Reserve's decisions on interest rates continue to be a critical factor for the DJIA. Recent statements from Fed officials have indicated a cautious approach to further rate hikes.

The DJIA is rejected from 45180 again. This is strong near-term resistance for an upside continuation, and i am seeing this as the end of the long-term fifth wave. A break above 45180 can invalidate this view and will lead to an extended fifth wave higher.

We are in a possible terminal phase of an uptrend fifth long-term wave with an indicated resistance of 45180. A breakout above this resistance will lead to an extension higher in the prolonged fifth wave and a rejection here will lead to a complete downside reversal which would be confirmed by a breakout below 42600.

_{You can take a near-term short-trade entry with an SL above 45300 to target 42400 and lower.}