Always consider hidden risks
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 )​​

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