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Dow Jones Industrials Index (DJIA) Monthly Summary Analysis »» New Pattern Forming
By: Marty Armstrong | March 16, 2019

THE ANALYSIS PER THE CLOSE OF Fri. Mar. 15, 2019: Dow Jones Industrials closed today at 2584887 and is trading up about 10% for the year from last year's closing of 2332746. At present, this market has been rising for this market has been rising for 2 months going into March reflecting that this has been only still a bullish reactionary trend.


Immediately, the market remains bullish on the short-term levels of our indicators while the long-term trend is bearish and our cyclical strength is bullish.

The historical major high took place here in 2018 and we have up to now this year remained trading within last year's range in a consolidating pattern. So far we have seen a trading range of 2624142 for a high and 2263841 for the low.

Meanwhile, our technical resistance stands at 2818645 and it will require a closing above this level to signal a breakout of the upside is unfolding. Nevertheless, our technical support lies at 1881635 which is still holding at this time. At this moment, the market remains between these two projections leaving it neutral on a technical basis.

A possible change in trend appears due come May in Dow Jones Industrials so be focused. The last cyclical event was a low established back during December 2018. Normally, this implies that the next turning point should be a reaction high. However, the market has made a rebound to the upside so we could see a potential reaction high at that time frame. Last month produced a high at 2624142 but closed on the positive side and so far, we are trading neutral within last month's trading range of 2624142 to 2488304. We need to breakout of this range to confirm the direction. Therefore, a close above will be bullish and a close below will warn of a possible decline.

Some caution is necessary since the last high 2695181 was important given we did obtain two sell signals from that event established during October 2018. Critical support still underlies this market at 2160033 and a break of that level on a monthly closing basis would warn of a further decline ahead becomes possible. For now on a broader perspective, this market in an uptrend posture looking at the monthly level. We see here the trend has been moving up for the past 2 months. The previous low of 2171253 made during December 2018 on the Monthly level has held and only a break of 2263841 on a closing basis would warn of a technical near-term change in trend. The previous high made during October 2018 on the Monthly level at 2695181 remains significant technically and only exceeding that level on a closing basis would suggest a reversal in the immediate trend.

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