This week, our members locked in profits on a major swing trade in the Dow Jones Industrial Average. We entered long back in early June at 42,500 and closed out our position on Tuesday at 46,500, capturing a clean 4,000 points per contract.
This trade exemplifies the power of patience, technical discipline, and sticking to high-probability setups.
Market News – Stocks See Two Days of Pullback
Markets have cooled slightly after record highs, with the Dow shedding 170 points (-0.4%) on Wednesday for its second consecutive day of declines. The S&P 500 dropped 0.3% and the Nasdaq Composite was off nearly 1%.
No major headlines triggered the weakness – this has been largely profit taking after a strong rally.
- AI Sector Drag – Technology stocks led the decline, with Alphabet down 1.8%, while Apple and Nvidia each slipped close to 1%.
- Oil & Commodities – Crude oil surged 2.5% after comments from Donald Trump on Russian energy exports. Gold eased back 0.8% after its strong run, while Bitcoin steadied near $111,000 after a heavy week of selling.
Technical Analysis
Dow Jones Industrial Average (US30)
- Our exit was well-timed as the index tested the upper end of its rising wedge and is now pulling back.
- Support sits near 45,700–45,200, with stronger levels at 43,200 if selling extends.
- The RSI has rolled over from overbought territory, and PPO momentum has flattened, signaling consolidation after the extended rally.
Nasdaq 100 (NAS100)
- The Nasdaq has shown signs of exhaustion after its recent highs, with a pullback forming against the rising trendline.
- Current support lies near 23,950, with deeper levels at 22,800–22,600.
- RSI is softening from elevated levels, while PPO is close to crossing bearish. This suggests potential short-term weakness before buyers return at lower supports.
S&P 500 (US500)
- The S&P has also rolled over from record levels, testing the rising channel support.
- Immediate support rests around 6,510, followed by 6,230–6,145.
- Momentum indicators are cooling, with RSI backing away from 70. A healthy retracement could set up the next buying opportunity.
Outlook
Despite the recent pullback, the broader trend across indices remains bullish. What we are seeing now is a classic post-rally digestion phase, where profit taking and sector rotation help reset conditions before the next leg higher.
Our Dow trade shows the value of scaling into strong setups and exiting strategically when momentum begins to fade. We are now looking for fresh opportunities across the Nasdaq and S&P as key supports come into play.
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