Sunday, March 13, 2016

INDU Dow Industrials Daily Chart Prints New Closing High for the Year but Remains Negative on the Year W Pattern

The Dow Industrials punch up through the closing high for the year at 17159 from 1/5/16 for a new record closing high for this year at 17213. The Dow began the year at 17425, however, so another 212 points are needed to print a positive year. Another day like Friday and it is there.

Price is in the 17425 neighborhood now and the weekly chart displays long and strong indicators so it is reasonable to expect the Dow to print positive on the year say at the tail end of this month into April. Keystone had highlighted the powerful W pattern on the SPX when it formed a month ago. The gauge of strength of a W pattern can be determined by how far below the 50 and 200-day MA's the pattern is; this W was under both moving averages so the W was powerful and kaboom, price is above 17200 in a flash.

The bottom of the W is 15680, let's call the top, the breakout level, at 16480. This is a 800-point difference so the target is 17280 (16480+800). The Dow is a stone's throw away from the W pattern target. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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