Today the DIA had a false breakout. We broke through the resistance line previously drawn and fell right back through it. I had said that we need some consolidation, and we had that for the last five days. So the breakout today, was a natural extension of the rally that began in late December. When he turned into a false breakout, it became a disappointment. Now we will be looking for a bounce at the support line indicated in the chart below.
The good news is that January is almost over, and we have a nice gain for the month. It will surely hold a nice gain for the month. Remember the old axiom, so goes January so goes the year.
If axioms hold true, this will be a great year.
CURRENT MARKET TRENDS
Long Term (Weekly Chart) – Sideways
Medium Term (3 day chart) – UP
Short Term (Daily Chart) – UP
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