The Dow Jones Industrial Average (DJIA) is trying hard to close the gap with the S&P 500 Index and Nasdaq 100 Index.
The Dow Jones Industrial Average has been lagging since peaking out in May, showing a meaningful negative divergence to the S&P 500 and Nasdaq 100. Now prices have pushed up to an important near-term level marking the highs of this pattern.
If DJIA closes back over 34,600 it would argue for a push back to new highs for 2021.
Increasingly, I think that any major selloffs may hold off until mid or late July. This would mean that pullbacks in the days ahead could prove to be minor and be buying opportunities. We’ll see.
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Author has positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.