Chart of the Day - Thursday, December 19, 2024

🏆 Today's Chart of the Day was shared by Chris Ciovacco (@CiovaccoCapital).
 

• The Dow was the only major index that closed higher today. It snapped a 10-day losing streak, although it was practically unchanged (+0.04%). 
   
• Chris points out that the Dow is testing a potential support area of around 42k. This level coincides with the AVWAPs from the July peak (orange) and the August low (blue). 
   
• The Dow is due for a bounce after snapping its longest losing streak in five decades. However, selling will likely intensify if 42k breaks. 
   

The Takeaway: The Dow snapped a 10-day losing streak while testing a potential support level around 42k. This is a logical spot for a bounce. However, breaking $42k would likely open the door for further selling.