The Down Jones Industrial Average Index just broke below support after hitting a new all-time high and is looking quite bearish.
The next move is clearly depicted in the chart above.
We are looking at a bearish RSI and MACD.
After a failed bounce, EMA50 (26677.5) is going to be tested next. If this level fails, the DJI is very likely to move lower all the way...
Hit upper trendiness of both formations, looking for reversal back into the range and move to lower trend lines in the coming months, unless a sustained break above invalidates.
MO has big negative divergence and the summation index will also turn down with a good sell off.
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.
Dow has put in a lower low and reversed back into the range. It stalled at the monthly R1 pivot on Friday after a strong rally, but the next objective now is to make a higher high at the 27300 mark to complete both broadening formations and hit the MR2 pivot.
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.
(Monthly chart is used)
The Dow Jones Industrial Average could be due for a major reversal soon because of the following reasons:
1) There is a triple top forming
2) RSI on the monthly chart is showing a severe loss in strength shown by 2 lower highs whilst price makes a triple top (aka bearish divergence).
3) MACD lines have crossed over indicating a reversal in...