Market Direction and Stock Trends

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Dow Jones Industrials Index Cash
By Martin Armstrong

* January 21, 2017

Analysis for the Week of January 23, 2017

We should see a trend change come this month in Dow Jones Industrials so pay attention to events ahead. Last month produced a high at 1998763 and so far we have exceeded last month's high. We now need to close above 1998763 on a monthly basis to imply a further advance to the upside immediately for now. As of the close of Fri. Jan. 20, 2017, the market is immediately in a neutral position for right now. Dow Jones Industrials closed today at 1982725 and is trading up about 0.32% for the year from last year's closing of 1976260. So far, we have been trading up for the past day since the low made on Thu. Jan. 19, 2017.

On the weekly level, the last important high was established the week of January 2nd at 1999963, which was up 9 weeks from the low made back during the week of October 31st. We have seen the market decline further this week dropping to 0. Interestingly, the Dow Jones Industrials has been in a bullish phase for the past 16 months since the low established back in August 2015.

The market is trading sharply some 8.04% percent above the last high 1835136 from which we did originally obtain two sell signals from that event established during May 2015. Long-Term critical support still underlies this market at 1561754 and only a break of that level on a monthly closing basis would warn of a break of the current uptrend. From the May 2015, this market declined into a low during August 2015 at 1537033. Right now, the market has rallied from that low and is breaking out to the upside. At this time, the market is holding and is trading above last month's high as well. From the low of August 2015, we have elected four buy signals. This warns that the trend is robust moving forward.



Rationally, my comprehensive expectation recognizes that the current trend is strong since the last important low established last August 2015, the market has rallied for the past 16 months and we have exceeded last month's high. Furthermore, the Dow Jones Industrials remains somewhat neutral at this present moment trading within last year's range of 1998763 and 1545056. Obviously, this market remains in a bullish posture broader-term with underlying support resting at the 1310420 level. Currently, this market is still trading significantly above this level by about 33%. Resistance conspicuously stands at last year's high of 1998763. So far, this market has remained in a bearish tone since the 1998763 major high established back in 2016.

Inspecting the immediate momentum is Neutral on the weekly level yet we did penetrate the week of January 9th's low. This is warning to pay attention since last month had closed higher so the upward momentum is weak on the monthly level. To date, the market has exceeded last year's high of 1998763. In order to maintain an upward advance, we need to close above last year's high at year end. On the weekly level, the last week of 1/16 was an outside reversal to the downside which is warning of a bearish immediate trend. Generally, this market is in an uptrend position on all our weekly indicators for the near term trend. We see here the trend has been moving up for the past 11 weeks. The last weekly level low was 1788356, which formed during the week of October 31st, 2016. The last high on the weekly level was 1999963, which was created during the week of January 2nd. However, we still remain below key resistance 1996643 on a closing basis. On a broader perspective, this market remains in an uptrend posture on all our indicators looking at the monthly level. We see here the trend has been moving up for the past 16 months. The last monthly level low was 1537033, which formed during August 2015, 2015. The last high on the monthly level was 1998763, which was created during December 2016.

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