Always consider hidden risks
DJ Industrials (DIA ETF): Still Above the Break Out Trendline ?
November 25 ( From TradingView, Stockcharts )
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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 20 2015.
In fact, when we broke the Support Trendline on August 20 2015,
over on Dow Jones Industrials (DIA ETF) on a short term basis and then
then the panic selling level on August 24 at 150.20.
( See 1rst Chart Below - Grey Trendline )
Since then, the market have been on a strong rebound. We are above now
the 20 DMA ( Day Moving Average ) and the 200 MDA since November 18,
the 50 DMA since October 7.
In fact, we did have a break out on November 18 from a Major Resistance Trendline that started back on May 20 2015 at 176.48 on the DIA ETF. ( See 1rst Chart Below - Red Trendline )
But what puzzle me the most is that, on that DJ Industrials Break Out, it was done on a Lower Trending Volume... ( See Chart Below - Bottom Right - Red Line )
That Trendline which was broken on November 18 becomes Major Support that Bulls need to protect at all costs with 176.21 support zone for today. Welcome to the Break Out Battlezone.
( See 1rst Chart Below - Red Trendline - Ellipse )
It will be a tough Battle as already the Dow Jones Industrial Bullish Sentiment Index is over the 85% treshold as shown by the second chart below.
Dow Jones Industrials ( DIA ETF Daily Candles )
20 DMA ( Yellow Line )
50 DMA ( Red Line )
200 DMA ( Green Line )
DJ Industrials (DIA ETF): Still Above the Break Out Trendline ? $DJI, $SPY #investing #dowtheory #SP500 #dowjonesindustrials
Dow Jones Industrial Bullish Sentiment Index
7 DMA ( Blue Line )
200 DMA ( Red Line )