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Hugo in HTO Trading,

Dow Jones Industrial Average: Showing some signs of weakness

Since the beginning of the year the index gain more than 2.0% however last week fell more than 1.0% but is in a bullish phase since mid-April after the golden cross.

Last week the index fell with a wide range however managed to close in the middle of the weekly range and also closed within the previous week range, clearly neutral, neither side is showing control.

The Stochastic is showing an extreme overbought market and is beginning to display a weak sign of bearish momentum.

Expecting a downward move to a key level at 17,078 (scenario 1) on a break below the previous week low at 17,567 but a bounce off  the key level at 17,078 could push the index up to a weekly resistance at 17,775 (scenario 2).