US30 MAY 26 2019 ANALYSIS
Hello KTFRX Subscribers and Followers!!!
Tyler here to bring you a fundamental and technical analysis of US30.
A few things first: US30 is also known simply as just Dow. It is a price weighted stock market index that measure the performance of the 30 largest publicly owned companies listed on the NYSE.
It is influenced by major economic data such as the rate of unemployment or inflation. Since the USD is the reserve currency of the world Fed announcements to their monetary policy tend to wield a tremendous influence on this particular index. The health of the American economy and strength of the American dollar do go hand in hand with US30 so because of this it is an extremely volatile pair.
While the Dow and S&P 500 may seem to have a tight correlation they each have their own “personalities: in how they trade. Dow is impacted more significantly by the performance of an individual stocks it is comprised of while the S&P 500 is least impacted by the day to day of any single one stock and more so dictated by specific sectors that have the most importance on the index.
US30 has been on a bull run for little over a decade at the present moment but has been presenting major resistance at the 27000 handle. This is quite possibly due to the geopolitical atmosphere of the USA since the last presidential primary. On the monthly time frame we can clearly see a triple top form as investors tried to push past the previous highs but were unable to each time.
Upon rejection of these highs we have seen a drop of 4000 pips or more which is a strong signal that the sellers are ready to take over. The current bearish momentum is running 2000 pips strong at the current moment. Last week the the first liquidated movement after rejecting the 27000 level has been broken by a 500 pip impulse to the downside breaking the most recent higher low.
With this market behaviour and the current retest at the 61.8 fib level, I am looking for price to continue to the 21259 price level before price stalls. 25561 is the area I am looking for my confirmed entry.