Ready Player?
Long-term the DJIA is in a trading range which started at 15,713 and extends to 35,713 (based on the numbers of Martin Armstrong. But don't blame him for my interpretation of his work.)
Through the rest of this week we should be concerned with two sets of price ranges. First, the range the DJIA just jumped the gap from:
1- 26,713
3 - 26,463
5 - 26,213
7 - 25,963
9 - 25,713
2 - 25,463
4 - 25,213
6 - 24,963
8 - 24,713
And the next higher range:
1- 28,963
3 - 28,713
5 - 28,463
7 - 28,213
9 - 27,963
2 - 27,713
4 - 27,463
6 - 27,213
8 - 26,963
While jumping the gap from in between 26,713 and 26,963 is important shorter term the long-term numbers are more daunting:
1 - 35,713
3 - 33,213
5 - 30,713
7 - 28,213
9 - 25,713
2 - 23,213
4 - 20,713
6 - 18,213
8 - 15,713
While the DJIA may have stuck the landing above 27,000, can it stick the landing above 27,213?
(Stick, Stick Man - Get it?)
It has been a long and windy road getting here:
1 - 31,213
3 - 30,963
5 - 30,713
7 - 30,463
9 - 30,213
2 - 29,963
4 - 29,713
6 - 29,463
8 - 29,213
And...
1 - 28,963
3 - 28,713
5 - 28,463
7 - 28,213
9 - 27,963
2 - 27,713
4 - 27,463
6 - 27,213
8 - 26,963
And...
1 - 26,713
3 - 26,463
5 - 26,213
7 - 25,963
9 - 25,713
2 - 25,463
4 - 25,213
6 - 24,963
8 - 24,713
And...
1 - 24,463
3 - 24,213
5 - 23,963
7 - 23,713
9 - 23,463
2 - 23,213
4 - 22,963
6 - 22,713
8 - 22,463
And...
1 - 19,963
3 - 19,713
5 - 19,463
7 - 19,213
9 - 18,963
2 - 18,713
4 - 18,463
6 - 18,213
8 - 17,963
We have seen a lot of twists and turns on our way to where we are today.
The DJIA reached an all-time high of 29,568.57 (nearly 29,713 level) and fell 39 places to 18,213.65 (almost exactly 18,213 level) as the economy was crushed in unprecedented fashion by the COVID-19 shutdown.
Then, in rapid fashion the market moved up 36 places from 18,213.65 (18,213 level) to 27,110.98 (27,213 level) as a new interim high before slowly sliding lower.
As markets open we wait and watch to see which door the DJIA will go through. Will it open the door that takes the market through the interim high of 27,110.98 past 27,213 to accelerate higher, perhaps to 30,000 or above as some anticipate?
Or does the DJIA jiggle the door knob only to find that it is locked and the only door that opens leads to the basement back down to 18,213.65 or below?
Perhaps tomorrow or Friday we'll learn if crossing above 27,000 from the In Between was a first step on the journey to challenge 30,000, or whether it was a market head-fake right before the longs found out they had not cleared the gap to 27,000 and instead, were momentarily suspended in mid-air about to plunge to new depths.
via GIPHY (Meep Meep!)
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