Following on from yesterday's update on EURUSD, USDJPY & EURJPY, this analysis of the Dow Jones will follow the same format. Do refer back to that prior post for further details if needed.
DOW JONES
Big Picture:
Facts: The Moving Average of the
rolling
monthly median of the high and low price, is green for buy and pointing
uphill. Price is in a corrective formation during which the momentum study has been burning off its overbought state. The next leg uphill will help to clarify whether it is part of an ongoing correction within this contracting diagonal or something else in either direction. For the moment, there is a little ways to go to hit that bottom support line at approx at 14850, so I'd be wary of premature attempts to catch a ride up; for now, anyway. Price has plenty of room in either direction within the envelope, and I would lean towards bullish moves in the intermediate term until there is a clear break of this upward drift.
Intermediate Picture:
Facts:
The Moving Average of the Daily Pivot is red for sell and pointing downhill. The Momentum
Study is moving uphill from an oversold state and appears to have created a resistance line and expanding diagonal perimeter 'break' on Friday following prior positive divergence.
Decision: The channel median at 15178 may be a point at which another sell recommendation might follow but for now, with the possibility that the downward 'correction' has ended one leg at least, I'll sit on the sidelines for further information. I either want to see the Moving Average turn green and then an oversold momentum study follow suit to buy, or for price momentum to fail at the 15178 line, to sell a red Moving Average down to 14850.
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