DOW Triggers New Monthly Trade Triangle

Hello traders everywhere. Close to the end of the trading day on Wednesday the DOW finally triggered a new green monthly Trade Triangle at $25,402.83 letting it join both the S&P 500 and NASDAQ on the long/bullish side of the market. However, the DOW still has some work to do to break out of the sideways trend that it has been trapped in.

The last time we got a new green monthly Trade Triangle was on December 5, 2016, at $19,225.29 and that uptrend stayed in place hitting an all-time high of 26,616.71 on January 26, 2018, before falling a new three month low of $23.344.52 and triggering a new red monthly Trade Triangle signaling that the long bull run had run its course. But as you can see the monthly Trade Triangle can be a powerful signal when it changes. Are we set for another long run to the upside?

Monthly Trade Triangle

On the flip side, Facebook Inc. (FB) is having the worst trading day in its history losing nearly 20% a day after its quarterly revenue missed expectations. Global daily active users, a key metric for the social media giant, also disappointed investors. Additionally, Facebook said it expects its revenue growth rates to slow down from last year. Facebook's earnings per share, however, topped Wall Street estimates.

It looks like Facebook is finally paying the piper for the Cambridge Analytica data misuse. I suspect that this is just a bump in the road as Facebook and Instagram (Yes, they do own that social platform as well) have become ingrained in society and our daily lives. Look for Facebook Inc. (FB) to rebound in the coming months because if the FAANG stocks have proven anything, they are tough to keep down for long.

Key Levels To Watch Next Week:

S&P 500 (CME:SP500): 2,768.51
Dow (INDEX:DJI): 24,518.43
Gold (NYMEX:GC.Q18.E): 1,218.10
Crude Oil (NYMEX:CL.UN18.E): 67.56
U.S. Dollar (NYBOT:DX.M18.E): 93.44
Bitcoin (CME:BRTI): 9,925.55

Every Success,
Jeremy Lutz and