The Dow had a significant rally on Monday, reaching the 16,830 level.
This index is considered the weakest of the 3 main indexes in the United States mainly because of the medium-term signals from July.
In this sense, we see that the current maximum level of 16,900 points is going to be a major short term obstacle, while 17,150 remains a heavier medium term resistance. A movement above 17,150 will implicate the cancellation of monthly bearish signals, making way for new rallies seeking to attack the 17,200-17,300 level and then 17,500 later, with higher a resistance.
Supports to watch in the short term are located at 16,600 points, while the previous minimum at 16,300 and the 200-day moving average are key short term supports for the Dow and where the increases should be taken up.
Only with direct fall below 16300 will the increases be postponed and we will see further declines toward 16,000 to 15,800, and maybe even down to the January lows at 15,300. Let's take a look...