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Sleepy Trump rally about to wake up according to this chart

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The Trump rally still has room to run, according to one market technician reflecting on the president-elect's Wednesday news conference.

Comments by Trump, especially about drug pricing, momentarily reversed earlier gains made by markets on Wednesday. But while some might speculate that the so-called "Trump rally" could be coming to a close, MKM chief market technician Jonathan Krinsky believes that stocks can still head higher from here.

While Krinsky points out that the market has been in a "trading range," with the Dow specifically trading in a 1.5 percent range since December, technical indicators known as Bollinger Bands could be hinting at a move up. Bollinger Bands are volatility bands that are placed above and below a moving average, and according to Krinsky, they are at one of their most narrow points in history. This suggests that times of higher volatility, or big stock moves, could be ahead. Based on the postelection surge in stocks, Krinsky believes that in this case, the move would be up.

"Bollinger bands being tight don't necessarily predict the direction of the next move, only that the market will likely come out of this trading range," he said Wednesday on CNBC's "Power Lunch." "So we're going to stick with the trend that's been up for a while now, and we think that probably pushes you through Dow 20,000."


This means that Krinsky sees the Dow finally rising the 70 or so points it will take to reach the highly anticipated 20,000 milestone.

For his part, Harvest Volatility Management partner Dennis Davitt believes that Trump's Wednesday comments have a more global implication for investors.

"If Trump comes out and holds true to what he's saying, what I heard today was get long Russia, get long Mexico and finance it by selling China," he said, anticipating that a Trump administration means closer ties with Russia and an even bigger rift with China.

The S&P 500, Dow and Nasdaq had recovered their losses by Wednesday afternoon.