DJIA Evening of 12-3-2018

DJIA closed Monday 12-3-18 at 25,826.43. It had traded up as high as 25,980.21.

It appears that the glow of potentially improved U.S.-China trade relations did not cast its warm glow on markets for long.

Given the past few days performance, and the part of the cycle that the market is in, it would not be surprising if the DJIA backed up a little bit.

As this is being written (7:46PM Central Time) the implied open of the Dow is almost 80 points lower than today's close.

If the DJIA can't trade and hold above 25,856 then it could attempt to make its way down to 25,600. On the downside 25,344 is a key level to watch as closing below it might indicate that the Dow is not yet ready to make another run at the top end of it's long-term range which stretches out to 28,672.

On the other hand, a close above 26,624 would put the DJIA back within the top end of it's range represented by a range of 26,624 to 28,672.

Thus far, despite all of the excitement between the end of October, the end of November and the beginning of December, not much has changed for the Dow. It has not closed on a monthly basis below 25,088 which would give the market a more bearish stance, nor has it closed above 27,648 on the month which would indicate the market was gathering momentum for a push higher to the next leg beginning at 28,672.