DJI came damn close to breaking through that Ichimoku Cloud Support! If it didn't get saved by the support then it quite possibly would've broke through the 200EMA and we would've seen the Conversion Line cross back under the Base Line of the Ichimoku Cloud. If it eventually does, then we'll probably see 25000 again which is around the 38.2% Fibonacci Level on the...
As hard as it is to predict the movement of any index fund at the moment without a deep dive into the fundamentals - it appears DJI has formed a well respected ascending trend line with several higher highs and low tests. Within the current economic bubble we can expect a crawl up to our recent highs of 27500 (at least) before re-assessing.
The Dow Jones Industrial Average Index (DJI) is also looking bearish.
This chart tends to look very similar, almost the same, as the SPX (S&P 500 Index).
The signals coming from this chart goes as follow:
1) Decreasing trading volume.
2) Lower high.
3) Bounce completed.
4) Drop below EMA10 and EMA50.
5) MACD bearish cross while trending lower.
6) RSI broke below...
I assume based on Dows failure to rally, perhaps this is a sign that market wants to turn around
At each test of resistance, after dropping more than 500 points, the market has continued to push bearish as well as the Divergence also validating the direction.
The dow bull market is over, the coming recession will cause the initial dip in the Dow which will correspond nicely with the upward lower bound trend and fibonacci retracement of around 22000. Then I'd expect a lower target of around the 50% retracement level of 16000 which will be at the height of the next US recession.
The S&P 500 Index has been a bit hard to read for beginners as the charts are giving bearish signals yet it continued to move up and break above certain strong resistance levels. As for The Dow Jones Industrial Average Index (DJI), this one is telling us a different story, this chart is much easier to read.
When you look at the chart, you can clearly see lower...
The chart for the Dow Jones (DJI) is basically the same one as the S&P 500 (SPX). So needless to say, this one will crash as well.
My long term analysis for DJI is still valid, you can see it here:
This new crash that is incoming is just an extension of...
The Dow appears to be carving an Inverse H&S. The election result still has room to create risk-off knee jerk reactions intraday. I will take advantage of any drops, trading against the low of October 29th.
A daily closing below the spike low of October 11 would somewhat negate the pattern, although I will look to the candle structure before making a trade.
The week before last gave us a shooting star/doji. The following week resulted in a pull-back that has everyone scared.
For now, we held lower parallel support. However, I'm leaning on the prospect of more downside for now.
The markets are telling us something: there is clear concern over the mid-term elections. If Democrats win, I'm sure that would pour water...
In my last commentary I noted that the Euro could bounce. The Dollar has just broken significant support as I write. I have short EURUSD positions remaining, but I'm strongly hedged with a DXY short.
I'm also long Gold and Silver, as a counter-trend short Dollar play.
I also noted that political confusion concerning Trump could make the US markets 'choppy' -...
We are at predictable resistance in DJIA. Last Thursday saw the break of a rising wedge, but Friday offered little follow-through. We are now falling moderately in early Sunday trading (at the time of writing).
I was aiming for a test of trendline resistance within the purple box. We can still test this area; either way, I'm betting on a wholesale decline in...