In the early 1980’s the Dow used old resistance to become new support at (1), where a breakout and strong rallied followed.
The Dow looks to be using old resistance as new support to push higher off of at (2) again.
Positive price action off new support at (2) continues. For bulls to get concerning long-term concerning message from this pattern, support would need to be taken out at (2).
The SPDR Dow Jones Industrial Average ETF (DIA) closed at $235.17 on Wednesday, down $0.56 (-0.24%). Year-to-date, DIA has gained 20.85%, versus a 17.28% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.