The Dow Jones reaches the 20000 points

The Dow Jones industrial index reaches for the first time in its lifetime the 20000 points, prolonging what it has come to be known as “the Trump rally”. The recent executive orders by Trump along with better than expected fundamental data from Japan and Europe has helped the index in getting to the much anticipated level. However, we must keep in mind that the index is clearly over-extended to the upside and there could be a bearish correction amid some profit taking. On the daily chart of the Dow we can see that to the downside, the 19600 level could act as support in case that the index retraces to that level. Below the 19600 we can see the 55 day EMA, purple line, around the 19436 level, which could also act as a support. The same 55 day EMA is showing us that the bullish trend may be losing its strength, due to the fact that the moving average is getting too horizontal. To the upside, above the 20000 level, the next resistance could be the 20100 level.