DIAmond Is Our Friend

After seven consecutive up days from the DJIA, it finally closed with a modest loss of -15.48 at 18,038.23. The tech heavy NASDAQ 100 also closed with a small loss of -1.45 at 4,312.64. The SP500 closed with a small gain of +1.80 and closed with another record high at 2,090.57. The Russell 2000 continues to make up for lost time and closed with another all time record closing high at 1,219.11, a gain of +3.90. The interesting thing that happened today is how the DJT closed with a new all time closing high after it was pulled back from a record close in the closing minutes on Friday. This move from the DJT suggest to the market watchers to look for another record high from the DJIA.

The weekly chart of the DJIA shows the index is still trending within the long term price channel with the near term upper channel boundary in the proximity of 18,350.

(click on the chart to enlarge)


And the weekly chart of the Russell 2000 shows a 38% FIB extension at 1274 as a potential near term target.



Since the December low, the market has been in a non-stop like move toward new high territory. It should not be surprised to market participants to see a modest consolidation before the market makes another attempt to move into a new high level. To avoid being trapped what might turn out to be a climactic blow out phase of this long term uptrend, continues to focus on the established quality stocks, and keep in mind the DJT just informed us DIA is our friend. Have a Happy New Year!