FINANCIAL ICEBERG
Always consider hidden risks
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 TECHNICALS
DJ Industrials:  Support Trendline at Play ?
 September 23 ( From TradingView )
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The Situation

​​​The US equity market was showing some strenght since mid-May  2015. ​Industrials were 
​performing very strongly since then and was a sign for that;  it did ​confirm the last upleg of the 
​stock market.  ​But the Industrials are weakening ​tremendously  since its peak done on 
​May 19 2015.

​​Two chart below is worth a look where we will show the the ​​Dow Jones ​Industrials.

On July 21, the DJ Industrials (DJI)  closed below the 50 DMA ( Day Moving 
​Average - ​Red Line - Chart Below ), a first weak
​technical sign.


On July 23, the DJ Industrials closed below the 200 DMA ( Day Moving Average -

​Green Line - Chart Below ), a second weak ​technical sign. 
​
​​​On August 11, the 50 DMA (Day Moving Average - Yellow Line - Chart Below) 
​​on the ​​DJ Industrials closed below the 200 DMA (Red Line - Chart Below), called a Death Cross, ​a third weak ​technical sign. ( Chart Below - Ellipse )

On September 17, DJI tested the Resistance Trendline from a Pennant Technical Pattern that started back on

August 25 2015 and we had a Shooting Star Pattern on DJI that day.
​​( See charts below:  Ellipse )​


​​On September 22, the DJ Industrials closed below the 20 DMA ( Day Moving Average -
​Yellow Line - Chart Below ) , and also testing the Support Trendline from a Pennant Technical Pattern.  ​​( See charts below:  Grey Trendline )

But the most interesting technical factor is that, On a Relative Basis compare to the SP500 Index, the DJ Industrials underperformed tremendously to reach levels not seen since March 2001!
​​​​( See Red Trendline - Second Chart Below )










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Dow Jones Industrials ​( Daily Candles )
​20 DMA ( Yellow Line )
​50 DMA ( Red Line )​
200 DMA ( Green Line )​



Charles Dow 


DJ Industrials:  Support Trendline at Play ?  $DJI, $SPY  #investing #dowtheory #SP500 #dowjonesindustrials










Financialiceberg.com


RATIO

Dow Jones Industrials
over SP500 Index ( Blue Line )

20 DMA ( Amber Line )​



Financialiceberg.Com