Chart of the day

Where do we stand fundamentally?

The Dow Jones Industrial Average (DJIA) recently hit a record high, closing above 44,000 for the first time. This new peak is part of a broader market rally driven by optimism following the U.S. presidential election results, which saw Donald Trump re-elected. Investors have responded positively to expectations of policy shifts under the Trump administration, including potential tax cuts and deregulation, which could particularly benefit sectors like energy and technology. Tesla, for example, saw a significant boost as Elon Musk’s alignment with Trump is expected to favor the company’s growth, although some aspects of Trump's policies may pose challenges for clean energy initiatives

DJIA is testing the first important resistance of 44500 which is the channel top. We need to see a breakout here for an upside extension to 50000 and possibly higher. Invalidation of this immediate upside extension could come upon a break below 44000.

We are in the development of the fifth wave higher short-term before a rally higher in the fifth short-term and long-term wave. As said the continuation of an extension could lead to a 50000 target in the medium-term to long-term if DJIA breaks and sustains a breakout above the 44500 resistance. The main upside support is 38950.

_{Try a short trade entry with a stop loss above 45200 to target 42000. You can trade it with options as well.}