ChartWatchers

January Stock Rebound Continues

 | 

Editor's Note: This article was originally published in John Murphy's Market Message on Friday, January 18th at 11:01am ET.


All major U.S. stock indexes have exceeded their 50-day averages (blue lines). That still leaves their 200-day averages to contain the rally. But there are a couple of other resistance lines that still need to be tested. Chart 1 shows the Dow Industrials nearing a test of their 200-day average (red arrow). In addition, the falling trendline drawn over its October/December highs should also provided stiff overhead resistance. The Dow would have to clear both barriers to signal a major turn to the upside. The same is true of the other two major stock indexes.

Chart 1

Announcement from the Author

{{ announcement.content }}

Subscribe to ChartWatchers to be notified whenever a new post is added to this blog!
comments powered by Disqus