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DJ Transports: Critical Technicals - Update1 ?
September 3 ( From TradingView )
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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 )
We are still into a main downward channel that started back on March 20 2015.
( See first chart below )
But the 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...
We are into the process of a Dead Cat Bounce...
1) Because we are still into that downtrend channel that started back on March 20 2015
( resistance line at 8 054.7 )
2) And also below the break down trendline that started on August 8 ( at 8 124.5 ).
( See second chart below: Blue Trendline )
3) We are still below the 20 DMA ( Day Moving Average ) now at 8 054.0 ( See charts below: Yellow Line )
We are into the process of a Dead Cat Bounce... Towards the 50% Fibonacci retracement at 7991.8 to maximum the break down trendline at 8 124.5 before resuming downtrend. Only breaking back those levels
will make the difference between a Dead Cat Bounce or a more serious Bullish Wave...
DJ Transports: Critical Technicals - Update1 ? $DJIA, $DJT, $SPY #investing #dowtheory #SP500 #dowjonestransport
Dow Jones Transport ( Daily Candles )
20 DMA ( Yellow Line )
50 DMA ( Red Line )
200 DMA ( Green Line )