An Asymmetric Setup in the Dow 🌤️ The Morning Print
Good morning!
The Dow Jones Industrial Average is the first major index to retest last year's highs.
Let's take a look.
Over the past few years, major retests have marked the bottom for the Dow.
The Covid highs held as support during the 2022 bear market, and the bear market lows held during last year's tariff selloff.
Now, the Dow is testing a confluence of potential support in last year's highs and the avwap off the April lows.
From a risk management perspective, this is an attractive area to get involved.
The level is clearly defined, so if price breaks below, you have a straightforward signal that the trade idea was wrong.
From a broader market standpoint, how the Dow reacts here will be very important information.
A breakdown would suggest a deeper shift to a more risk-off environment, and vice versa if this support were to hold.
This is a big level, with very big implications.
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