Chart of the day

Where do we stand fundamentally?

The December consumer price index (CPI) report, released on January 15, showed core inflation rising by 3.2%, below the forecasted rate of 3.3%. This data led to a positive market reaction, with stocks rallying. Treasury yields dropped, and growth stocks, including tech giants like Tesla and Nvidia, performed well.

DJIA bounced off the strong support 42600. This is strong near-term support before the last line of a resistance long-term which is 38950. A break below 38950 will be needed to indicate a fifth wave top. A break above 45160 will lead to an immediate extension higher.

We are in the possible terminal uptrend channel with indicated support and resistance to watch and follow the price action. Near-term we could see an extension of swing trading.

_{You can take a near-term long-trade entry with an SL below 42900 to target 45000 again if your trade is stopped wait and reverse it to a short trade.}