The Dow And S&P Have Room To Run
On Tuesday the Dow Jones Industrial Average and S&P 500, and their respective ETFs DIA (NYSE: DIA) andSPY (NYSE: SPY) , tested longer term intra channel support levels as we have defined them in the charts below.
Wednesday's initial decline and reversal helped confirm that test.
So long as those support levels hold we would expect continued upside.
For example, our upside target for the DJIA, assuming 16001 holds, is 17142. We cannot be sure if support will hold, so 16001 also acts as a risk control, but it was successfully tested on Tuesday and if it holds that will be a net positive for the markets on a near term basis.
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