DJIA joins SPX, QQQ back at new all-time highs

Near-term and intermediate-term technical trends remain bullish for US Equities, but it’s thought that the rally in US Stocks likely will face some meaningful resistance at marginally higher levels, which might begin sometime next week, before August 20th. DJIA has now officially joined both SPX and QQQ back at new all-time highs following the sharp move in UNH this week, and it’s still thought that SPX should push up above 6500 next week before much resistance sets in. Overall, despite some of the minor concerns regarding Elliott-wave patterns nearing completion, seasonal/cyclical periods of weakness approaching and waning breadth, it’s going to be necessary to see evidence of US Equity index prices turning down in a manner that would help to add conviction to these concerns. Both US Dollar and US Treasury yields seem to be headed lower in the weeks to come, and this is thought to be helpful for US risk assets. Overall, while it’s proper not to grow too complacent in August, it’s also proper to let this rally run its course until the market demonstrates evidence of starting to weaken.  For now, it still appears that the path of least resistance remains higher.

Friday’s new development concerned $DJIA pushing back to new all-time highs with its weekly close above 44910 and daily push above $45200.

While many feel it's right to criticize $DJIA given its price-weighted nature, this is a very important gauge for US stocks, and it’s positive to see the recent negative divergence with $SPX and $QQQ having been eliminated.

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