Price action shows us that the DOW is still following a regular upward cycle. Excitement at a new local high has driven instability in the last few trading sessions, but the strength of the underlying economic forces has not changed at all. There may be a short term easing of the price over the winter quarter, as the Stochastic oscillator shows it to be overbought...
On the whole, an upward trend appears to be continuing, although weak readings on the SMI indicate severe market indecision. The price could break either way in the next 10 trading sessions, with a possible testing of the upper donchian channel at 1.122 before a downward trend begins. The dollar continues to weaken throughout 2014, and this trend is not expected...
Although candle analysis indicates market consolidation towards a potential top, price action indicates a donchian channel breakout in the next 5 trading sessions. The SMI indicates market indecision rather than consolidation, following a strong buy a signal 2/03, it seems that price action is likely to continue higher if it breaks the 172.00 reisitance...
