The Dow Jones 30 rose during the course of the week as you can see, moving to the 17,000 area. This area is resisting, so we would believe that a move above 17,000 on a daily close would be enough to get the longer-term traders involved as well. Regardless, this is without a doubt a very positive market, and we do feel that ultimately that does happen. Pullbacks should continue to see plenty of support below, so we will buy supportive candles as they appear after dips.
The continuing theme of strength in the Dow Jones is remarkable when set against the lack of progress made by the FTSE and DAX. Futures this morning have rallied from their lows, and once again the 20-DMA is doing its usual job of holding up the market.
Thus the upside case remains in force, with a look towards the highs of last week in the direction of 17,150. The uptrend off the April lows remains intact, so any weakness in the direction of 17,000 and even slightly below that does not really imperil the rally.
