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 TECHNICALS
DJ Transport and Industrials: Another Warning from the Dow Theory ?
 August 26 ( From TradingView, Stockcharts, CNBC )
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The Situation

​​​The US equity market was showing already some sign of weaknesses 
​back since November 2014 coming from the Dow Jones Transports ( DJT )
( Second Chart Below ) ​and  from mid-May 2015 for ​the Dow Jones
​Industrials ( DJI ). ( First Chart Below ).

Both reached their peak prices at that time ( November 28 2014 for the DJT
​and May 19 2015 for the DJI.. Since then, a lot more bearish technicals
​patterns occured:

1) Both were making lower highs and lower lows
​​​​​2) Both broke their 50 DMA ( Day Moving Average ) and still below it
( ​Red Line - Charts Below )
3) Both broke their 200 DMA ( Day Moving Average ) and still below it
​( ​Green Line - Charts Below )
​4) A Death Cross Pattern confirmed on Both​ : ​the 50 DMA closed below the 200 DMA
​5) And finally this week, both broke their lows made back in October 2014 ( Chart Below - Red Trendlines - Ellipses )
​​Article from CNBC: A Dow Theory 'sell' sign has the market nervous
​​​​
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!  And it broke the previous lowest level reached back on January 2006...  More on the Dow Theory
​​​​( See Red Trendline - Third 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 Transport and Industrials: Another Warning from the Dow Theory ?    $DJI, $SPY  #investing #dowtheory #SP500 #dowjonesindustrials

Financialiceberg.com
RATIO
Dow Jones Industrials
over SP500 Index ( Blue Line )
20 DMA ( Amber Line )​

Financialiceberg.Com
Dow Jones Transport ​( Daily Candles )
​20 DMA ( Yellow Line )
​50 DMA ( Red Line )​
200 DMA ( Green Line )​