Party Like It's 1964
The Dow Jones Industrial Average DJIA rose 181 points on Friday, making it the ninth straight weekly gain for the Dow and the first time since 1964 that the DOW rose in the first 8 weeks of a calendar year.
This recovery since the Christmas lows is primarily due to Fed Powell succumbing to the Markets demands and putting its interest-rate policy on hold.
In addition, growing hopes that the US and China will come to a tariff agreement in the coming weeks. President Donald Trump described negotiations with Chin as having a "very good chance" of reaching a deal and as a result the March 1st deadline for imposing new sanctions could be extended.
So will the DOW continue to rally, lets go to the charts to find out?
Monthly Chart (Curve Timeframe) - Monthly demand is at 21800 and monthly supply is at 26500.
Weekly Chart (Trend Timeframe) – the trend is sideways, but the momentum is up as indicated by the V-shape pattern.
Daily Chart (Entry) – the chart suggest to short the DOW at the daily supply at 26550. However, one must wait for confirmation since price has been straight up in the last two months.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
The real question is....what happened the rest of 1964? ;-)
Woodstock happened afterwards and it was all about peace and love.
A classic V shape bounce which if played well from those driving the market would mean new highs despite the tired legs of this bull market.
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It's certainly looking that way based on momentum, but it will be interesting to see if this becomes a buy the rumor, sell the move sell-off.