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DJ Industrials ETF (DIA): Broken Wedge?
June 14 2016 ( From TradingView, Stockcharts )
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The Situation
Since we made almost a double top technical pattern (April 20 2016 and June 8 2016)
on the Dow Jones Industrial Average ETF DIA, we are into a lower highs and lower
lows technical pattern... (See 1rst Chart Below)
So DIA ETF is trading within a downtrend channel that started back since April 20 2016.
(See 1rst Chart Below - Channel) We closed on June 13 below the 20 DMA (Day Moving Average) then at 177.23
on the DIA ETF (See 1rst Chart Below - Yellow Line - Ellipse), but most importantly,
below the 50 DMA. (See 1rst Chart Below - Red Line)The DIA ETF broke on June 13 2016 a Major Support Trendline from a huge rising wedge
that started back on February 2 2016 on a rising volume. It was the first line of defense
for Bulls (See 1rst Chart Below - Red Trendline - Ellipse), the second line of defense define by the
200 DMA (Day Moving Average). (See 1rst Chart Below - Green Line)
As we are broke that Major Support Trendline, in fact Bulls failed to break yet on a relative basis (ratio of DIA ETF over SPY ETF) the Resistance Line that started back since December 2011 as shown by the second chart below. (See 2nd Chart Below - Top Red Trendline) But what puzzle me the most is that, a Big Divergence continue to prevail between the Dow Jones Industrial (DIA ETF) and the Dow Jones Transportation (IYT ETF): Is it a Warning from the Dow Theory?
(See 3rd Chart Below - Industrial Candles - Transportation Blue Line)
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Dow Jones Industrials ( DIA ETF Daily Candles )
20 DMA ( Yellow Line )
50 DMA ( Red Line )
200 DMA ( Green Line )
Charles Dow
DJ Industrials ETF (DIA): Broken Wedge? $DJA #investing #dowtheory #SP500 #dowjones
Financialiceberg.com
Daily Ratio ( Blue Line )
Dow Jones Industrials ( DIA ETF )
over
SP500 Index ( SPY ETF )
20 DMA ( Yellow Line )
50 DMA ( Red Line )
200 DMA ( Green Line )
Financialiceberg.com
Dow Jones Industrials ( DIA ETF - Candles )
and
Dow Jones Transportation ( IYT ETF - Blue Line )
Financialiceberg.com