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As we approach the end of another month, I thought it might be interesting to look at the above “Monthly Closing” chart on the Dow, dating back 100 years. As the Dow is closing the month, last nights closing price was within 24 points of the 2007 monthly closing high.
As the Dow is near the important 2007 highs, it also finds itself at the top of its 70-year rising channel at (1) in the above chart. Rising support, created by higher lows is coming into play as well, putting the Dow in a very tight spot, caught in-between long-term support and resist lines.
Momentum is on the side of the bulls and if enough buyers continue to come forward, one would have to view a breakout, as technical positive.