INDEX:DOWI DOW Industrials
Price action shows us that the DOW is still following a regular upward cycle. Excitement at a new local high has driven instability in the last few trading sessions, but the strength of the underlying economic forces has not changed at all. There may be a short term easing of the price over the winter quarter, as the oscillator shows it to be overbought at this time, but there is no genuine reason to believe that a failure in the underlying structure has taken place. Economies do not suddenly plunge through the floor for no reason other than a new high. I expect a pullback at some point to 16500 and some lateral movement over then next quarter or two, with a return to higher prices later. If the US engages ISIS in a ground war, this prediction may change.