Speaking fundamentally, the Dow Jones enjoyed a lot of bailouts over the past few years and may continue to enjoy them in the future. Although, speaking technically, it has been struggling to manage the bullish rally we've seen since 2009 so far forming many layered divergences that are trapped and ready to explode. The massive bubble that started in 1971 (when the USD went off the gold standard) looks bright and unstoppable but unfortunately, underneath those layers of deception, production is less in the US with producers outsourcing to other production-friendly countries with the employment gap as evidence of that. Less tax, less regulation, tariffs on outsourcing and more free-trade is what'll save the economy of the USofA, but it will be a true fight with all the government entitlement programs which sucks all that money out of the market of production. Fundamentally, the index could easily be pushed up further with the hype of growth, but inevitably, what goes up must come down!
[Not responsible for any trades and/or investments taken on the premise of this idea. Do research, analyze the market and trade carefully. Best of luck!]
Comments
Mennzz
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A fake-out to around $17,400 is likely to happen, but don't catch yourself off guard because a boom down would definitely follow after hitting around that area. :D
Mennzz
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Checking again, it may fake-out all the way up to around $17,830 before starting the downtrend. Be cautious though, volatility may kick in at any time.