I want to wish all of humanity a very good morning. And all the very best for new beginnings. Now that we have good news about a COVID vaccine.
Wish me luck too with my maiden newsletter.
Wall Street celebrated by posting new highs on the Dow. Strong news flow on a Biden Presidency and Democrat majority in the Senate also was an important factor that contributed to all time highs, which was just short of 30000 on the Dow
Given the above setting it makes perfect sense to start our Learn 2 Trade with an analyis of the world’s largest market.
Dow is clearly in an uptrend as long as it stays above 28444 it is good for a target of 30500. But it will have to clear the previous highest close of 29510-29520.
However as we say never look at the picture only in one particular direction.
Always invert.
So the scenario is valid as long as 28400 is not breached. Below 28400 it would confirm a double top on the long term charts. Thist would open up the market for a downside of 26200-26400 and possibly even the onset of a bear market.
Sentiment indicators to track are
a credible Trump challenge that leads to a recounting of the votes
tax increases that put pressure on the Dollar
civil unrest.
Its important to track the Dow as it is truly the barometer of worlds markets.