On November 24, the Dow Jones recaptured the prior support and then resistance area around 8,144, suggesting that the recent drop below it had been a mere bear trap, shifting the bias to bullish again. After some consolidation, the index broke above short-term crucial resistance at 8,790-8,831 in Monday’s trade. It is now facing resistance at the declining 50-day moving average at 8,866 and has established a short-term consolidation below this hurdle and Monday’s high at 9,026 the past two sessions. A break above 9,026 would corroborate the improved short-term technicals and may trigger further upside towards around next significant resistance above at 9,654. Next potential support levels are coming in at 8,637-8,646, 8,447 and 8,118. A violation of the latter level would imply a resumption of the major trend lower.
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