On the daily chart below for the Dow Jones, we can see that after the major breakout of the trendline and the 32684 resistance, the market rallied strongly and managed to break above the key 33538 resistance consolidating just above it. The trend is now bullish as we can see from the moving averages.

The market seems to be trading again on the goldilocks scenario where inflation comes down on its own without major losses in the labour market. In fact, the latest NFP report showed moderating wage inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term with a tight jobs market. The next big event is US CPI tomorrow.

Dow Jones technical analysis

On the 4 hour chart below, we can see more closely the consolidation just above the 33538 resistance. This may be due to both negative and positive news we got the last week coupled with the Easter Holidays that led to lower liquidity and a more cautious price action. Today European traders come back from the holidays and the market should come back to its normal trading regime. The key releases to watch this week are the US CPI tomorrow and the US Jobless Claims on Thursday.

In the 1 hour chart below, we can see the mini range highlighted by the blue rectangle. The buyers will want to see a break above the upper bound of the range to start piling in and extend the move to higher highs with 34477 as the ultimate target. The sellers, on the other hand, will want to see a break below the lower bound of the range to jump in and target lower lows with 32684 as the major target.