DOW rose to close at new record high at 35484.97 overnight, up 0.62%. The slight moderation in core CPI in the US seemed to be welcome by investors. The development so far affirmed the view of the “transitory” camp in Fed. While it’s still on track for tapering, probably sooner than expected, there is still much room to wait-and-see before eventually raising interest rates, probably late next year.
Technically, the long term up trend in DOW now looks ready to enter into another near term acceleration phase. Outlook will stay bullish as long as this week’s low at 35041 holds. Next target is 61.8% projection of 26143.77 to 35091.56 from 33741.76 at 37159.81. We’ll see if DOW could hit this level within Q3.
