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DJ Transports: Critical Technicals ?
September 2 ( From TradingView )
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The US equity market was showing some strenght since mid-October 2014.
performing very strongly since then and was a sign for that;
it did confirm the last upleg of the
stock market. But the Transport are
weakening tremendously vs the DJ Industrials since
January 29 2015.
We wrer warned by the Dow Jones Transports but did not listen...
On May 26, we had the 50 DMA ( Day Moving Average ) on the Dow Jones
Transports crosses below the 200 DMA ( Death Cross ). A bad omen...
( See chart below: 50 DMA - Red Line - 200 DMA Green Line - Ellipse )
In fact, a lot more technical damage have been done when we broke the
Support Trendline also on May 20... ( See chart below: Grey Trendline )
And after the broken support trendline on August 20...
( See first chart below: Yellow Trendline )
And finally we broke on August 21 the support trendline...
( See chart below: Blue Trendline )
We are still into a downward channel that started back on March 20 2015. ( See chart below )
But the most interesting technical pattern here is that we are retesting the previous low zone level made back in October 2014 at 7 700 for the Dow Jones Transports. Interesting also to observe that it is also the 0.764 Fibonacci Retracement from the top of August 5 ( rejection of the resistance trendline that started back on December 17 2014 - Grey Trendline ) and the bottom made on August 24. ( See first chart below: Red Trendline - Ellipses )
Rebounding from those abyssmal technical levels will be quite a statement from Mr Market.
The 7 700 zone becomes the key level to follow on a daily close for this week...
DJ Transports: Critical Technicals ? $DJIA, $DJT, $SPY #investing #dowtheory #SP500 #dowjonestransport
Dow Jones Transport ( Daily Candles )
20 DMA ( Yellow Line )
50 DMA ( Red Line )
200 DMA ( Green Line )