Daddy Dow Jones
Premium Research
Investors,
It’s great to receive personal messages from many of you expressing your excitement about the new premium series that I announced in yesterday’s edition of Cubic Analytics! If you missed the announcement, please read it here. Several members have upgraded to a paid/premium subscription already! To upgrade you subscription from free to premium, please click the link below to review different options:
This series will be published on a monthly basis, exclusive for premium members, who vote on the stock being analyzed. To access this research, consider upgrading today! To vote on the company that will be reviewed, please refer back to yesterday’s edition and vote using the poll! So far, Chevron & CrowdStrike have received the most votes… Voting will end this upcoming Saturday, and premium members will receive the first deep-dive on Wednesday, February 1st.
In November, I highlighted when the Dow Jones was breaking above a key resistance range, the upper-bound of the descending channel from all-time highs. This was the chart at the time:
With this classic breakout structure there were two primary takeaways:
This was a bullish breakout, possibly foreshadowing a continued extension higher.
If/when the extension cooled off & the index consolidated, the upper-bound of the channel could act as support.
Sure enough, both of these takeaways were true, confirmed by the updated view below:
The index gained a total of +4.3% before reaching a local peak, consolidating, and flipping the upper-bound of the channel into support. Typically, these types of rebounds will produce a rally that extends beyond the first local peak, so I wouldn’t be surprised to see the Dow Jones rally a bit more this upcoming week before cooling down once again.
In today’s premium report, I’ll be focusing primarily on the Dow Jones and key indicators for the index, in addition to the S&P 500’s under-the-hood metrics, and other charts I found valuable. With inflation concerns appearing to dissipate, markets are celebrating and popping bottles of champagne. The question that every investor should be asking is: “will the cops be shutting down the party soon, and if so, when?”