News 
Market Data 
Discover
Replies to post #43609 on Market Direction and Stock Trends
05/29/22 10:15 AM
The Dow Jones Industrials closing today at 3321296 is immediately trading down about 8.60% for the year from last year's settlement of 3633830. Up to now, this market has been rising for 2 months going into May reflecting that this has been only still a bullish reactionary trend. As we stand right now, this market has made a new low breaking beneath the previous month's low reaching thus far 3063576 while it is still trading above last month's close of 3297721 implying near-term strength.
Up to now, we still have only a 2 month reaction rally from the low established during February. We must exceed the 3 month mark in order to imply a trend is developing.
ECONOMIC CONFIDENCE MODEL CORRELATION
Here in Dow Jones Industrials, we do find that this particular market has correlated with our Economic Confidence Model in the past. Our next ECM target remains Mon. Apr. 10, 2023. The Last turning point on the ECM cycle low to line up with this market was 2020 and 2009 and 2002. The Last turning point on the ECM cycle high to line up with this market was 2007 and 2000.
MARKET OVERVIEW
NEAR-TERM OUTLOOK
The Dow Jones Industrials has continued to make new historical highs over the course of the rally from 2009 moving into 2022, which has been a run of 13 years warning that timing wise a pause remains possible. Currently, the market has dropped back and is trading beneath the previous year's close warning of a potential correction in play.
This market remains in a positive position on the weekly to yearly levels of our indicating models.
Looking at the indicating ranges on the Daily level in the Dow Jones Industrials, this market remains moderately bullish currently with underlying support beginning at 3275217 and overhead resistance forming above at 3472382. The market is trading closer to the support level at this time.
On the weekly level, the last important low was established the week of May 16th at 3063576, which was down 4 weeks from the high made back during the week of April 18th. We have been generally trading up for the past week from the low of the week of May 16th, which has been a move of .0788%.
INTERMEDIATE-TERM OUTLOOK
YEARLY MOMENTUM MODEL INDICATOR
Our Momentum Models are rising at this time with the previous low made 2018 while the last high formed on 2021. However, this market has rallied in price with the last cyclical high formed on 2021 warning that this market remains strong at this time on a correlation perspective as it has moved higher with the Momentum Model.
Looking at the longer-term monthly level, we did see a correction from the key high of January for one month. Since that low, however, we have consolidated for 2 months. Meanwhile, the past two months has witnessed a rally of 2.18% percent. A month-end closing below 3291315 will warn that the market is losing its upward momentum and should retest support below. It will take generally a monthly closing above 3549222 to maintain a near-term upward rally.
This market is trading well beneath that high of January which was 3695265 by more than 10 percent. Critical support still underlies this market at 2669110 and a break of that level on a monthly closing basis would warn of a further decline ahead becomes possible. Nevertheless, at this time, the market is still weak trading beneath last month's low.
DiscoverGold 
