Wednesday’s postelection rally harbored bullish signals, says veteran technician Ralph Acampora. The technician reiterates that this trend will only continue. The Dow Jones industrial average closed up at about 250 points on Wednesday, within the reach of its record high, after Donald Trump was victorious in the presidency.
The initial reaction from the market was bearish, where the Dow futures fell around 800 points before recouping most of the losses. Acampora had tweeted “Buy this dip” earlier in the day. The technician was not worried about a short term rally, “Dow 20,000 here we come,” said Acampora on CNBC’s Closing Bell.
Acampora believes that the Dow will reach 20,000 by the end of the year. He believes that drug-makers, industrials, and financials will gain momentum and join in the push to lead the market higher. “People are going to realize the world is not coming to an end,” he said. Where Trump will “break the binds” of regulations, “that’s got to be great for business.”