Has the Dow Entered a New Trading Range?

Courtesy of Chris Kimble, check out the potential breakout — or is it fakeout? — of the Dow Industrials, below: 

click for ginormous chart dowbreakingnewsjan27.png

Note that “Bullish sentiment fell to a 10-week low in the latest AAII Sentiment Survey. Expectations that stock prices will rise over the next six months fell 8.7 percentage points to 42.0%.”

While that is a positive, it requires a bit of context: Despite the decrease, bullish sentiment remains above its historical average for the 21st consecutive week. This is the second longest streak for above-average bullish sentiment since the survey began in 1987, according to Charles Rotblut of  AAII.


Originally published at The Big Picture and reproduced here with permission.