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DJ Transports / SP500 Index Technicals: DJT Testing Major Support ?
January 13 ( 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 2015 on the Dow Jones Transports ( DJT ) at
7452.70, even if few realize that the DJT now trade well below that level.
( See first chart below: Amber Trendline )
Rebounding from those abyssmal technical levels was quite a statement
from Mr Market in August 2015 but since then more and more divergence
occuring between the Mighty Dow Jones Transportation Average Index (DJT)
and the Dow Jones Industrial Average (DJI).
In fact, different technical indicators or trendline make a huge divergence:
1) SP500 Index is at only 9.1% from its peak reached on May 20 2015.
( See first chart below )
2) SP500 Index is in far of testing the Monthly Major Support Trendline that started back on March 2009.
( See first chart below - Thick Blue Trendline )
3) DJT is at 25.0% from its peak reached on November 28 2014.
( See second chart below )
4) DJT is testing already the Monthly Major Support Trendline that started back on March 2009.
( See second chart below - Thick Blue Trendline - Ellipse )
ONE chart below is worth a look where we will show the ratio of the Dow Jones Transportation to the Mighty SP500
( Bottom Chart )...
Since October 26, the 50 Day Moving Average on that ratio started a
brand new downtrend ( DJ Transport started to underperform the SP500 ); It reached a level last seen in December 2012...
( Bottom Chart - Grey Line )
But the interesting technical factors is that it is the first time that we have a Major Divergence since the past two years as the ratio is making lower highs but not the Mighty SP500. Quite surprising that DJ Transportation underperform with Oil price historically low...
DJ Transports / SP500 Index Technicals: DJT Testing Major Support ? $DJT, $SPY #investing #dowtheory #SP500 #dowjonestransport
Dow Jones Transportation ( Monthly Candles )
SP500 Index ( Monthly Candles )
Dow Jones Transport
SP500 Index ( Top Panel - Blue Line )
50 DMA ( Red Line )
and SP500 Index ( Bottom Panel )