Down, Up, Down, Up

The Dow shrugged off worries over Trump's new tariffs and the resignation of his chief economic adviser last week and returned to the 50-day moving average.  This is a sign of strength, in part driven by a generally positive jobs report.  Amazingly, the Dow seems reluctant to test the 200-day moving average during what now might be just a 'mini-correction.'  This is an extraordinary 9-year bull market.  Only the markets of the 1990's under Bill Clinton surpass the present bullish streak.  It looks like this bull is clearly range-bound in a symmetrical triangle at the moment.  Such a triangular pattern will result in either a new upward or downward trend.  Notice also that volume continues to be lackluster.  Investors don't know what to make of all the conflicting signals and are not too excited one way or another.

Comments

Unknown said…
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