Over the past several weeks I have touched on the S&P 500 index as well as the Nasdaq. Today it’s the Dow’s turn. All three indices have similar looks, or actually “had” similar looks; after all, the Nasdaq made new all-time highs this week. The daily congestion and breakouts, however, were the similarity.
Although the Dow has a long way to go to reach its own new all-time high, it is leaving the congestion zone. If this bid continues, look for a little resistance near 25,500. If the Dow can break that level, I believe it could extend to 25,800 to 26,000 rather quickly.
Although I doubt this will matter much, there could be a fly in the ointment: this weekend’s G7 summit. If the “negotiations” break down, or worse, the market may take that as an indication that trade wars will indeed be heating up. Watch the Sunday night futures markets for reaction.