With the backdrop of potential for easing trade war tensions between the United States and China, the futures market implies that Dow Jones Industrial Average will open up over 400 points over Friday's close.
Despite this, the overall picture on the DJIA has changed little between the October and November closes.
The Dow is nearing the top of a trading range which began at 10,240 and stretches all the way to 28,672.
DJIA Long-Term Big Picture looks like this based on 9 levels:
1 - 10,240 - 12,288
2 - 12,288 - 14,336
3 - 14,336 - 16,384
4 - 16,384 - 18,432
5 - 18,432 - 20,480
6 - 20,480 - 22,528
7 - 22,528 - 24,576
8 - 24,576 - 26,624
9 - 26,624 - 28,672
The next leg of the Dow will begin when the DJIA achieves a monthly close at or above 28,672.
Therefore, the market is approaching the top level but has not yet again crossed the 26,624 level which represents the boundary between the 8th and 9th levels of the current market.
The all-time high of the DJIA was 26,951.81 - 1,720.19 points shy of 28,672.
Key monthly close levels to watch for determining market direction:
A. 25,088 - A monthly close below 25,088 would tilt the market in a bearish direction.
B. 27,648 - A monthly close above 27,648 would indicate the market is tilting in a more bullish direction. A monthly close above 30,208 would provide further confirmation that the market was more solidly within the next leg of its expansion.
A DJIA close above 26,624 on a daily basis would place the DJIA back within it's highest level - the 9th of the range from 10,240 to 28,672.
A DJIA close below 25,344 on a daily basis could indicate a weakening DJIA.
24,000 represents psychological support on the downside.
26,000 represents psychological resistance to the upside.