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TECHNICALS

Dow Jones Industrial: Sentiment / Behavior Divergence ?
September 14 ( From Stockcharts , TradingView )

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The Situation

The main technical indicators like the moving average of the Bullish
Percentage Index of the Dow Jones Industrial Average (DJIA) are
showing some sign of weaknesses since August 20 2015... This ratio
turned on a bearish trend since then and now stand at 26.6%.
(29.0% for the 7 DMA - Day Moving Average).

That Indicator is in bearish mode and reached level not seen since
October 7 2011 when the Mighty DJIA was at 11 433 level.
( See First Chart Below - Ellipses )

But the most interesting factor is that taking the ratio of the Bullish Percentage Index of the DJIA over the New York Stock Exchange Composite Index ( NYSE), we can observe that the Relative Sentiment on the DJIA cratered since mid-August but the DJIA outperformed the NYSE Index during that time. A nice Divergence Indeed. ( See second chart below ) Same thing was observe with the XLI ETF and the SP500 Index.

Another very interesting Technical element on the DJIA, it is that it started a Technical Continuation Pattern called a Pennant exactly the same found on the SPY ETF. ( See Third Chart Below )
( More details on SPY Technicals: My Dear Pennant Pattern ? )

So we must carefully following carefully those trendlines because when triggered, it will tell us on which side the Break Out will be.

Dow Jones Industrial: Sentiment / Behavior Divergence ? $SPY #Trading #investing #nyse #SP500

DJIA Index Bullish % Index ( Top Panel - Dots )
7 DMA ( Blue Line )
200 DMA ( Red Line )
DJIA Index ( Bottom Panel )

RATIO
DJIA Index Bullish % Index over NYSE Index Bullish % Index ( Top Panel - Dots )
7 DMA ( Blue Line )
200 DMA ( Red Line )
DJIA Index over NYSE Index ( Bottom Panel )

Financialiceberg.com

DJIA Index ( Daily Candles )
Pennant ( Orange Lines )
20 DMA ( Yellow Line )