Yahoo Finance US stock markets pause before the Memorial Day weekend
Dow Jones 30
The Dow Jones 30 initially trying to rally during the week but came back a lot of the gains as the 25,000 level continues to be resistance. Forming a shooting star of course is a negative sign, especially when you do it a couple of weeks in a row. I believe that we will probably pull back to test the uptrend line again, or at the very least the 24,500-level underneath. Alternately, we break above the couple of shooting stars, the market could continue to go much higher, perhaps reaching towards the 25,500 level, followed by the 26,000 level. The uptrend line underneath continues to be massively important, as it defines the entire uptrend.
NASDAQ 100
The NASDAQ 100 rallied significantly during the week, reaching towards the 7000 handle. That is the top of the range for the last couple of weeks, so the fact that we fail there is not a huge surprise. If we can break above the 7000 handle, you can see that there is a shooting star that extends to the 7200 level. If we can break above that level, then we are finally free to go much higher. I think short-term pullbacks will be likely, but those should be buying opportunities as we are in and uptrend. However, we are definitely on the precipice of some type a significant move, so we need to decide which direction we are going to go. Until we break down below the uptrend line though, I think it’s safer to buy.
Dow Jones 30 and NASDAQ Index Video 28.05.18
This article was originally posted on FX Empire
