January 17, 2018 | The Scent of Dow 30,000

The bull market’s blowoff-like trajectory has steepened, if such a thing were imaginable, with Wednesday’s 322-point rally in the Dow. The blue chip average is ostensibly headed to the 27,251 target shown, and although this Hidden Pivot resistance is worth shorting, I wouldn’t recommend standing in the herd’s way if it is exceeded by more than 10-15 points. The broad averages reportedly are about to set a record for consecutive days of upwardliness without correcting 5% or more. Statistics aside, it sure feels like it.  The opportunity for buyers to take a breather may be approaching with the nearness of the target flagged above, but we shouldn’t be shocked if it fails to contain their energy. At that point, Dow 30,000 would become all but a foregone conclusion. However, we should keep in mind that, even as the Indoos appear to steam toward a fated rendezvous with an irresistibly round number, ‘foregone conclusions’ are the stuff of bull traps.

Rick Ackerman January 17th, 2018

Posted In: Rick's Picks

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