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DJ Industrials: Support Trendline at Play ?
September 23 ( From TradingView )
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The SituationThe 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
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 )
Dow Jones Industrials ( Daily Candles )
20 DMA ( Yellow Line )
50 DMA ( Red Line )
200 DMA ( Green Line )
DJ Industrials: Support Trendline at Play ? $DJI, $SPY #investing #dowtheory #SP500 #dowjonesindustrials
Dow Jones Industrials
over SP500 Index ( Blue Line )
20 DMA ( Amber Line )