DOW 20,000 is More Than a Psychological Level
DOW 20,000 is more than just a psychological level; it may help to define the character of the weekly candle, which could have bullish or bearish implications, particularly at new highs. At this point in the trading week the incomplete price action has formed a white marubozu or a large white candle with little or no upper and lower shadows, which is considered to be a bullish candle. But the weekly candle still has another day to mature.
If the index were to see a pullback of 100.92 points from its close on Thursday, it would move back below the 20,000 level and form a moderately high wick candle. This high wick or long upper shadow would not qualify as a shooting star or doji candle but would reflect some level of rejection. A shooting star or a doji would require a close approximately 200 points or more lower, and that would clearly be a bearish candle.
So, the 20,000 level has more than just a psychological implication. The ability to hold above it will color the weekly candle and, perhaps reveal a little about investor conviction.