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DJ Transports: Critical Technicals ?
 September 2  ( From TradingView )
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The Situation

​​The US equity market was showing some strenght since mid-October 2014.
​Transports were ​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...​​​​


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Charles Dow
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 )​