Fundamental overview: On Wednesday, traders got a stronger than expected update on the labor market in ADP's June private payrolls report. This underscored the ongoing economic recovery with a sixth straight monthly increase in employment, with jobs rising by 692,000 versus the 600,000 expected.
Technical overview: DJI looks like it finished a corrective pattern, as you can see in the orange channel, followed by a strong bullish impulse that seems to gather momentum. As the price action for the last bullish wave had a very impulsive nature, we expect it to come close to the support level before it will reach a new all-time high. Trade with care.
Best regards, Financial Flagship
Disclaimer: The analysis provided is purely informative and it should not be used as financial advice. Remember that you need a plan before you start trading; so, take this knowledge and use it as a guidebook that will ultimately help you understand the market and easily predict your next move.
@financialflagship you think we’re gonna go down a bit before going up at this point? Currently stuck with a short at 34463 and just looking to breakeven at this point. Thoughts?
jmo326
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@ftptrading, I was wondering the same thing. I’m not in a trade but looking for a good entry point for tomorrow. It makes sense that it would retrace a bit like it did yesterday but it could just continue to go up
jvGator
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@ftptrading, it could very well pull back to 34500 then bounce, that wouldn't surprise me but worth the risk ..... everyone has their own risk tolerance, I would bail.
ftptrading
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@jvGator,appreciate the comment man! You’d bail right now if you were in a short at 34463 or wait for a bit for a pullback?
financialflagship
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@ftptrading I am expecting a bigger pullback to occur before breaking the top again. It may come at least somewhere in the region of the 38.2 fib retracement of the last bullish impulse...
jvGator
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I agree, all the technicals are converging for a run. I feel really strongly DJIA will keep going higher over the next 3 weeks. And you are correct all the pieces are in place for an ATH.
financialflagship
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@jvGator Yes, but I think we will make a pullback soon before going for the ATH.