Further rallies coming for the Dow?

By Julian Yosovitch

http://www.futuresmag.com/2014/07/15/further-rallies-coming-for-the-dow

July 15, 2014 • Reprints

The Dow Jones closed higher on Monday at 17054 points and we see that the index is trading within a short-term bullish channel. As long as the DJI continues trading inside the channel we will still expect further rallies towards 17200 points in the first instance and 17,500 points later, near the top of the channel and an important short-term hurdle.

If the market takes a bearish turn, the Dow will find support at 16930 points or potentially 16800-17750 which is close to the previous lows and the 50-day moving average, indicating a shift to the uptrend.

Only with a direct break below 17750 will the index leave the channel and become vulnerable to expand the bearish movement back to the 16530-16400 points area with lower support for the Dow.