Dow Jones Waits For One of Two Scenarios

Negative trading dominated the Dow Jones Industrial Average on Wall Street after finding a strong resistance level around 31,040/31,070.

Technically, there is a contradiction between stochastic concentrating around overbought areas, and negative signals coming from the RSI on short time frames.

We are staying on the fence until the more clear direction and waiting for one of the following scenarios:

Reactivating long positions depends on crossing to the upside and rising above 31,070, which is a catalyst that enhances the chances of an advance towards 31,210, then 31,320, next stops.

Activating short positions depends on witnessing a clear break of support level 30,870 to target 30,710 then 30,640.

Note: The level of risk is high.

S1: 30710	R1: 31070
S2: 30495	R2: 31210
S3: 30360	R3: 31420