It’s forming a triple top, likely reversal?
However, QQQQ broke out but the lighter than average volume makes the breakout less convincing.
Dow Jones Industrial approaching previous high
It will have to test the previous high first. We might see a breakout from this ascending triangle. So the resistence is at 12,845 and then 13,000 if it breaks out.
Uptrend broken
Dow Jones Industrial has broken its uptrend line. It will likely test the major support area at 12,000.
Tuesday’s big drop was the first in a few years.
2006 Year end review
In 2006, RUT performed the best followed by INDU and S&P 500. QQQQ recovered the 10% loss from the mid-year and ended up more than 5%.
Both QQQQ and RUT are in the overhead resistence levels, only INDU and S&P 500 broke out. INDU is at all-time high and S&P 500 is about 100 points away from its all-time high.
Passing 12,000
12,000 is at the rear mirror now. INDU has been strong in the past two weeks. Even though it’s in over-bought territory, INDU has the momentum to reach higher at year end rally. The mid-term election was over, the market did not over-react to the new political landscape in Washington.
