1 Index, 3 Views
Tim Knight | Jan 13, 2017 12:24AM ET
This will be a simple, straightforward post: just a look at the Dow Jones Composite with a short-, medium-, and long-term view.
The short-term view reveals something which has been the case for many indexes lately – an entire month – – a whole stinkin’ month – – of going nowhere. You can see the upper and lower bounds of this range, and many indexes (including the Dow) look exactly like this. After the Trump victory, the market doesn’t quite know what to do with itself.
Taking a step back, though, you can see how vulnerable things are. I’ve tinted this month-long range below, and if we slip beneath it, it opens up the floor to a drop down to that supporting trendline. Earnings might do it; the realization that this country is completely screwed under Trump might do it; who knows.
Stepping way, way back, you can really appreciate just how elevated things are. Keep in mind, the Dow Composite is a roll-up of the Industrials, the Utilities, and the Transports, so it’s a pretty good all-encompassing view. We should have started dropping after December 2014, and indeed, we began doing so – – – – but twenty trillion dollars in debt can keep this fakery going longer than you might imagine, so we can an additional leg-up. All the same, present price levels are mashed up against a resistance trendline that goes back for decades.
That’s it for now; see you Friday morning!
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.