From a technical perspective, the benchmark Dow Jones Industrial Average (DJIA) could be at risk of a short-term pullback as prices carve out a bearish Rising Wedge pattern.

Bearish RSI divergence and a notable drop-off in volume hints that the recent topside push may be running out steam.

Failing to close on a daily basis above wedge resistance and the December 29 high (30502) could ignite a correction back towards the 21-day exponential moving average (29982) and wedge support.

Wall Street 20201230 12.57

Alternatively, pushing past the 30500 mark would likely signal the resumption of the primary uptrend and bring psychological resistance at 31000 into the crosshairs.
A bearish crossover on the MACD indicator, in tandem with the RSI dipping sharply back below 60, suggests the path of least resistance may be lower.

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