FINANCIAL ICEBERG
Always consider hidden risks
TECHNICALS
DJ Transportation: At Technical Crossroads?
April 26 2016 ( From TradingView )
April 26 2016 ( From TradingView )
If you would like to receive our free daily markets updates, please Sign-up
The Situation
We just start to realize how deep the correction last summer was on the
US equity market: On the low made on August 24 2015 on the Dow Jones
Transportation Average ( DJT ) at 7452.70, even if few realize that the DJT
now trade just slightly above that level. (See first chart below: Amber Trendline)
The Mighty Dow Jones Transportation Average Index (DJT) is at some
major technical crossroads.
Here is some Technical Observations:
1) DJT outperformed with 24.8% from its bottom reached on January 20 2016
and SP500 is at only 15.3% and in a steep uptrend channel. (See first chart below)
2) DJT from highest peak price (reached on November 28 2014) to the lowest price yet (reached on
January 20 2016) was 31.2% and only 15.2% for the Mighty SP500. (See first chart below)
3) DJT is near testing the Daily Support Trendline that started back on January 20 2016 from an Uptrend Channel. (See first chart below - Channel - Ellipse)
4) DJT is still above the Fibonacci Retracement zone of .50% at 7857 (From peak price on May 20 2015 to the Low price on January 20 2016) (See first chart below - Thin Green Line - Ellipse)
5) On March 18 2016, on a relative basis (the ratio of Dow Jones Transportation to the Mighty Dow Jones Industrials) we kissed the 200 DMA (Day Moving Average) (See second chart below - Green Line - Ellipse) and failed to stay above and now back below the previous break down zone. (See second chart below - Brown Trendline - Ellipse)
6) Almost the same battle with the Mighty SP500 Index on a relative basis. The ratio (Dow Jones Transportation to the Mighty SP500 Index) tested the 200 DMA (Day Moving Average) on April 21 2016
(See third chart below - Green Line - Ellipse) and we are back below the previous break down zone.
(See third chart below - Brown Trendine - Ellipse)
As the Dow Jones Transportation finally rebounded strongly since January 20 2016, it failed to reach yet the 8300 zone; it is still into a lower highs and lower lows technical pattern, a completely different pattern than the SP500 Index. (See First Chart - Thick Amber Trendline - Ellipse)
But most importantly, the Dow Jones Transportation was rejected strongly on a relative basis (Dow Jones Industrials and the SP500 Index) by failing to stay above the ultimate 200 DMA (Day Moving Average).
(See second and third Chart) Bulls need to break those...
The Dow Jones Transportation is obviously at Technical Crossroads.
We just start to realize how deep the correction last summer was on the
US equity market: On the low made on August 24 2015 on the Dow Jones
Transportation Average ( DJT ) at 7452.70, even if few realize that the DJT
now trade just slightly above that level. (See first chart below: Amber Trendline)
The Mighty Dow Jones Transportation Average Index (DJT) is at some
major technical crossroads.
Here is some Technical Observations:
1) DJT outperformed with 24.8% from its bottom reached on January 20 2016
and SP500 is at only 15.3% and in a steep uptrend channel. (See first chart below)
2) DJT from highest peak price (reached on November 28 2014) to the lowest price yet (reached on
January 20 2016) was 31.2% and only 15.2% for the Mighty SP500. (See first chart below)
3) DJT is near testing the Daily Support Trendline that started back on January 20 2016 from an Uptrend Channel. (See first chart below - Channel - Ellipse)
4) DJT is still above the Fibonacci Retracement zone of .50% at 7857 (From peak price on May 20 2015 to the Low price on January 20 2016) (See first chart below - Thin Green Line - Ellipse)
5) On March 18 2016, on a relative basis (the ratio of Dow Jones Transportation to the Mighty Dow Jones Industrials) we kissed the 200 DMA (Day Moving Average) (See second chart below - Green Line - Ellipse) and failed to stay above and now back below the previous break down zone. (See second chart below - Brown Trendline - Ellipse)
6) Almost the same battle with the Mighty SP500 Index on a relative basis. The ratio (Dow Jones Transportation to the Mighty SP500 Index) tested the 200 DMA (Day Moving Average) on April 21 2016
(See third chart below - Green Line - Ellipse) and we are back below the previous break down zone.
(See third chart below - Brown Trendine - Ellipse)
As the Dow Jones Transportation finally rebounded strongly since January 20 2016, it failed to reach yet the 8300 zone; it is still into a lower highs and lower lows technical pattern, a completely different pattern than the SP500 Index. (See First Chart - Thick Amber Trendline - Ellipse)
But most importantly, the Dow Jones Transportation was rejected strongly on a relative basis (Dow Jones Industrials and the SP500 Index) by failing to stay above the ultimate 200 DMA (Day Moving Average).
(See second and third Chart) Bulls need to break those...
The Dow Jones Transportation is obviously at Technical Crossroads.
tatisticCode" src="Scripts/stats-tracking.js">
Charles Dow
DJ Transportation: At Technical Crossroads? $DJT, $SPY #investing #dowtheory #SP500 #dowjonestransport
Dow Jones Transportation
( Daiy Candles )
20 DMA ( Day Moving Average - Yellow Line )
50 DMA ( Day Moving Average - Red Line )
200 DMA ( Day Moving Average - Green Line )
( Daiy Candles )
20 DMA ( Day Moving Average - Yellow Line )
50 DMA ( Day Moving Average - Red Line )
200 DMA ( Day Moving Average - Green Line )
Financialiceberg.Com
Financialiceberg.Com
Daily RATIO ( Blue Line )
Dow Jones Transportation
over
Dow Jones Industrials
20 DMA ( Day Moving Average - Yellow Line )
50 DMA ( Day Moving Average - Red Line )
200 DMA ( Day Moving Average - Green Line )
Dow Jones Transportation
over
Dow Jones Industrials
20 DMA ( Day Moving Average - Yellow Line )
50 DMA ( Day Moving Average - Red Line )
200 DMA ( Day Moving Average - Green Line )
Daily RATIO ( Blue Line )
Dow Jones Transportation
over
SP500 Index
20 DMA ( Day Moving Average - Yellow Line )
50 DMA ( Day Moving Average - Red Line )
200 DMA ( Day Moving Average - Green Line )
Dow Jones Transportation
over
SP500 Index
20 DMA ( Day Moving Average - Yellow Line )
50 DMA ( Day Moving Average - Red Line )
200 DMA ( Day Moving Average - Green Line )
Financialiceberg.Com
