Dow

The DJIA has been showing a short term negative divergence in the momentum indicator. This can sometimes lead to near term reaction in prices. However, the depth can vary based on the situation. At times a pullback may only go to the 20 DMA which in this case is that 28,600 for the Dow,  after which prices continue to extend higher as they have not achieved the Fibonacci targets . . In other situations a slightly steeper pullback to the 40 day average may occur and that level of that 28730. The wave count itself is of 1/3 wave extending and therefore the larger trend remains up. The near term. Volatility is just something that we need to deal with.