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Dow Jones Industrials Index (DJIA) Monthly Summary Analysis »» Slingshot Up
By: Marty Armstrong | June 22, 2019

THE ANALYSIS PERSPECTIVE AS OF THE CLOSE OF Fri. Jun. 21, 2019: Dow Jones Industrials closed today at 2671913 and is trading up about 14% for the year from last year's closing of 2332746. Immediately, this market has been declining for 2 months. This price action here in June is warning that we may have at least a temporary high in place beginning perhaps a bearish reactionary move on the monthly level if we see lower prices next month or close lower. Otherwise, there remains the potential for a one-month Knee-Jerk reaction low. As we stand right now, this market has made an outside reversal exceeding the previous month's high reaching thus far 2690737 and it has broken last month's low falling to 2468057 while it is still trading above last month's high of 2668939.


Presently, the market remains unchanged within support still above our system indicators while the long-term trend and cyclical strength are 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 2690737 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.

Our timing models warn that a turning point is due come October in Dow Jones Industrials so we should remain focused. The last cyclical event was a low established back during May. Normally, this implies that the next turning point should be a reaction high. However, thus far, this market has already broken that previous low established at 2480951. This strongly implies we are in a cycle inversion process, which tends to be rather bearish overall. Last month produced a low at 2480951 but closed on the weak side and so far, we have exceeded last month's high. We now need to close above 2668939 at month-end to imply a technical reversal of trend to the upside for now.

Critical support still underlies this market at 2426873 and a break of that level on a monthly closing basis would warn that a sustainable decline ahead becomes possible. Nevertheless, the market is trading above last month's high showing some strength. Taking a broader view, this market is in a downward trend on all our indicators looking at the monthly level. We can see this market has been down for the past month. The previous high made during April on the Monthly level at 2669596 has now been exceeded in the recent rally. The previous low of 2171253 made during December 2018 on the Monthly level. However, we still remain above key support 2263841 on a closing basis.

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