DowJones - Retesting all time highs

Disappointing US jobs data is keeping equities well bid as expectations that the tapering of the FED stimulus package is not going to happen quite as soon as people had previously expected.  Combine this with an impressive earnings season for US stocks and you can understand the strength seen recently.

Were having a 3rd attempt to break the 15,700 level which is proving to be a strong resistance level with double/triple top chart formation developing.  A failure on the upside will result on the focus back on the support area around 14,850/14,700 and the 2008 high of 14,167.  A break on the upside could propel the index up to around the 16,825 on the 138.2% Fibonacci projection.


Mindset is still very much 'buying dips' with this index, as the MACD is confirming the uptrend and we're midrange of a bull channel.  The only word of warning is that the RSI is entering into the overbought territory, so if you do not already have an existing position it might be worth sitting on your hands for now and waiting for a confirmed breakout before getting long.







Charts sourced from ig.com