Technical Analysis Points To Dow 30K Next Target

An incredible really/breakout pattern is setting up in the US Stock Market and US Indexes currently that many traders/investors may not be paying attention to. This is such an incredible opportunity for traders.

Almost without fail, the end of each year experiences a “Christmas Rally” that results in a moderate bullish price bias for most of the 4th-quarter. Over the past 17 years, 76.47% of each Q4 period resulted in an average +1049.85 pts in the YM (Dow Futures Contract). Only 23.59% of the time did the YM decline on an average of about -1039.75 pts. This data helps us to understand that downside price rotation in the Q4 (Christmas Rally months) is possible, but unlikely by a 4:1 ratio. It also helps us to understand that our expectations of a massive price rally, much greater than the average +1049 pts, may be a very big play for traders.

Let’s take a look at some Daily charts that support our conclusions and warn of downside risk levels.

Within each of the two following charts, you will notice similarities. The markets are setting up in a similar pattern that clearly illustrates how price wants to react to a positive price impulse and where support is located. We believe any downside risk, at this time, would be from a dramatic external news event. In other words, we believe current support will hold and we believe the upside price bias will become the ultimate outcome.

This first chart is a Daily YM chart showing our proprietary Fibonacci price modeling system. Notice the upside and downside projected price targets on the right side of the chart. When these price targets are at wide disparities, as they are now, it usually indicates that the markets are setting up for a bigger breakout move. Additionally, it is easy to see the YELLOW Support Zone and the Key Price Support level on this chart.Based on Fibonacci Price Theory, the YM price trend is already Bullish and within a minor price pullback. As long as the Key Price Support level is not breached, the trend will stay Bullish.

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