Market Overview

The Dow And S&P Have Room To Run

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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.

Stock Traders Daily is a provider of investment strategies and analysis for investors and substantial risks are associated with investing in the stock market.  Consult with your own personal financial advisors before making any decision to invest.

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Technicals Trading Ideas

 

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