With the rally unfolding as we discussed in our last commentary, we are now awaiting some form of a retest or consolidation to confirm that we’ve seen the actual low of the recent correction on November 16th at 12,471.

The current market position is now overbought near important resistance levels. The key levels we are watching on the chart of the Dow Industrials is 13,069 which is just above today’s close with the next resistance level coming in at 13,209. If the market begins to struggle at these levels then we should see another short-term decline into the holiday season.

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