Always consider hidden risks
DJ Transports Technicals - Rejection ?
 September 21  ( From TradingView )
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The Situation

We just start to realize how deep the correction was on the ​​US equity market:
On the low made on August 24 on the Dow Jones Transports ( DJT ) at 7452.70,
the last time we reached that level was back on April​ 15 2014.
​( See first chart below: Amber Trendline )
Rebounding from those abyssmal technical levels will be quite a statement
​from Mr Market but we were only into the process of a Dead Cat Bounce...​

​​In fact, the market tried a Technical Break Out that was rejected last week.

Why so:
1) On September 17, DJT tested the Resistance Trendline that started back on
May 29 2015 and we had a Shooting Star Pattern on DJT that day.
​​( See charts below: Yellow Line - Ellipse )​

​2) On September 18 we broke  the Support Trendline from an Uptrend channel
​that started back on ​August 26 2015.   ​​( See charts below: Uptrend Channel - Ellipse )​

​3) ​And also on September 18 we are back below the break down trendline that started on July 7. 
​( See Charts below: Blue Trendline )​

​4) ​​​​​​We are back into a main downward channel that started back on August 5 2015.
​​( See charts below: Downtrend Channel )​

​​​But the interesting technical factors is that on September 18, the Dow Jones Transport Average DJT,   dropped 289.95 points, or 2.18%, to close at 8,036.37 with all 20 components in the red on very strong
​Volume activity.


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Charles Dow
DJ Transports Technicals - Rejection ? $DJT, $SPY #investing #dowtheory #SP500 #dowjonestransport

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