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DJ Transports Technicals - Rejection ?
September 21 ( From TradingView )
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The SituationWe 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.
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
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 )