In the chart below, I highlighted that the Dow was breaking above key resistance line (1)  for only the 2nd time in its history at (3). (see post here)


Game plan at that time was to BUY THE DOW, due to the breakout.  Below is an update on the progress of the Dow (left chart in the 3-pack below) and two other key markets.


The Dow and the NDX 100 are creating space above their breakout levels. Last week I did a post, asking if  “13 was going to be lucky for the 500 index (see post here).   The 500 index has moved higher since the post, as it attempting to create some space above the 1,300 level.  Not only are these major markets breaking above key levels, Mid-Caps stand at all-time highs (see post here) 

Game Plan…Keep the Long Dow and MDY positions with 3% stops.   Shared in the “lucky 13” post that if you were long, just keep a tight stop in place, 3% below the 1,300 level.  If short, be very careful of an upside breakout and the pain it could cause as the next major resistance is the top of channel at the old highs.


How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past