MarketWatch
The Dow just punched above an important line in the sand that may signal that a record high is next
Mark DeCambre
11 hrs ago
"The Dow closed above a key technical level that is viewed by market technicians as signal that a new bullish trend may be at hand.
The Dow Jones Industrial Average (DJIA) finished up 2.2% at around 25,548 on Wednesday, with the market buoyed by optimism around business reopenings after being locked down for the past several weeks due to efforts to curb the spread of the COVID-19 pandemic.
The Dow’s rally on Wednesday afternoon represents a steady move toward retracing 61.8% of the 124-year old benchmark’s coronavirus selloff from its record high in February to a low late March.
The blue-chip benchmark’s finish at 25,364.89 on Wednesday, signals to market technicians that a new trend has been established and that the next move for the Dow may be eclipsing its record high put in on Feb. 12 at 29,551.42 (see attached chart).
“The breakout supports a full 100% retracement of the downdraft, so targets February’s high, and the same will apply for the [Dow industrials],” Katie Stockton, market technician and founder of Fairlead Strategies, told MarketWatch of the Dow’s retracement, while also referencing the S&P 500’s retracement, which was decisively cleared last week.
Indeed, the S&P 500 (SPX) and the Nasdaq Composite (COMP) indexes have both retraced at least 61.8% of their declines between February and March due to the economic impact of the coronavirus pandemic. The S&P 500’s 61.8% retracement was at 2,947.33 and it is now headed for its first close above its 200-day moving average above 3,000, also viewed by technical analysts as a bullish sign of momentum in an asset."
marketwatch.com
The Dow just punched above an important line in the sand that may signal that a record high is next
Mark DeCambre
11 hrs ago
"The Dow closed above a key technical level that is viewed by market technicians as signal that a new bullish trend may be at hand.
The Dow Jones Industrial Average (DJIA) finished up 2.2% at around 25,548 on Wednesday, with the market buoyed by optimism around business reopenings after being locked down for the past several weeks due to efforts to curb the spread of the COVID-19 pandemic.
The Dow’s rally on Wednesday afternoon represents a steady move toward retracing 61.8% of the 124-year old benchmark’s coronavirus selloff from its record high in February to a low late March.
The blue-chip benchmark’s finish at 25,364.89 on Wednesday, signals to market technicians that a new trend has been established and that the next move for the Dow may be eclipsing its record high put in on Feb. 12 at 29,551.42 (see attached chart).
“The breakout supports a full 100% retracement of the downdraft, so targets February’s high, and the same will apply for the [Dow industrials],” Katie Stockton, market technician and founder of Fairlead Strategies, told MarketWatch of the Dow’s retracement, while also referencing the S&P 500’s retracement, which was decisively cleared last week.
Indeed, the S&P 500 (SPX) and the Nasdaq Composite (COMP) indexes have both retraced at least 61.8% of their declines between February and March due to the economic impact of the coronavirus pandemic. The S&P 500’s 61.8% retracement was at 2,947.33 and it is now headed for its first close above its 200-day moving average above 3,000, also viewed by technical analysts as a bullish sign of momentum in an asset."
marketwatch.com
