Dow rolls over, shifting directional risksDirectional risks in the Dow Jones contract appear more balanced following the break of uptrend support earlier this week, a view supported by momentum indicators such as RSI (14) and MACD, which have also rolled over, delivering a neutral signal. More weight should be placed on price action in the near term rather than maintaining a specific bias.
If the price can hold above support at 45,762, longs could be established above the level with a stop beneath for protection, targeting the record high of 46,723 set earlier this month. Should the uptrend break lead to an extension of the bearish move beneath 45,762, the setup could be flipped, with shorts placed below the level and a stop above for protection. The 50DMA, 45,000 or 44,500 screen as potential targets.
Good luck!
DS
