Dow Jones Resistance

The Dow Jones faces a major decision point into a known resistance cluster – monitor what happens here closely.
Let’s take a quick look at the key level and plan accordingly:

The 20/50 EMA cluster overlaps the 16,750 area in the Dow Jones Industrial Index.
Contrast this with the breakout yesterday in the S&P 500 .
There’s a bit of disconnect – at least on the price chart – between the breakout for the S&P 500 (which could morph into a failed breakout or bull trap) and the reversal candle today that is developing into this cluster in the Dow Jones.
For now, we’ll note a downside retracement pathway for price back to the 16,400 area IF price continues to move down away from the resistance cluster.
Alternately, we’ll note a Bullish Breakout Pathway – similar to the S&P 500 – should buyers push the index back above the 16,800 level and into the clear “Open Air Pocket.”  If so, 17,100 and beyond (similar to 1,990/2,000 in the S&P 500) would become the tradeable target.Please share this article