Dow Jones (DJI) Hidden Bearish Divergence (Crash Ahead)

TVC:DJI   Dow Jones Industrial Average Index
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 highs being printed, this is marked with blue down arrows.

On top of the lower highs, we also have hidden bearish divergence marked on both the MACD and RSI , which are also in a downtrend.

Both the MACD and RSI are also trending down and getting closer to entering the bearish zone. A strong drop is scheduled to happen soon.

I am looking first at 0.618 Fib. retracement for support followed by 1 Fib or EMA200 (orange line).

Conditions for change: For this analysis to become invalid, the DJI would need to move up, close, and remain above 26951.8, which is its all-time high. This is a very unlikely scenario at this point, but if you are trading this or any other asset, it is always smart to remain open and be prepared for all scenarios.

With that said, I believe the DJI will continue with its bearish tendencies and decline in value in the coming weeks and months... What's your opinion?
Share in the comments section below.

Feel free to hit like to show your support.

Thanks a lot for reading.

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Hahaha. What a noob. Seriously how much money have you lost. Haha
The whole market is being levitated and moved around now by only one single thing that manipulates all the algos - by the oil price. There are no other relevant factors or technicals left. Huge purchases of oil futures and huge market manipulation to levitate the market through supporting the oil price or otherwise taking profits by pushing crude up and down to where the traders and hedge funds want the market to be throughout the day is all that is happening now.

Note how the whole market moves in unison at the moment, not individual stocks or sectors playing on their own fundamentals or own technicals. No "real" investment money is going into the market (only share buybacks through free money or splurging the profits, or other financial flows swilling around - but no new money from normal investors). You will see gold futures and treasuries (the ultimate back - up storages of value) temporarily dumped to levitate oil which then levitates the market when necessary, then the process reversed when necessary.

It's now more of a casino crossed with a shoot them all computer game controlled by algos trading crude oil, not a stock market anymore.
+3 Reply
@mstable, Thanks a lot for the detailed comment.
Great analysis. Thank you.
+1 Reply
@DonnaSko, Thanks.
Haha. Hard to read for beginners? That was funny sensei. I haven’t seen anyone getting more rekt than you in the last 9 months lol.
+2 Reply
It's a bear. Each move down followed by a .50 - .62 retracement then another move down- stepping stones. Went 26250 > 25850 > 26100 > 25750 > 25950 > 25500 today hit 25600 in day expect retest that level, maybe 25750 then throwover. Expecting 3 sessions of chop and churn before another break- would setup for Thursday 3/28/19. Let's see if we get waterfall selloff to a double bottom!
alanmasters DaddySawbucks
@DaddySawbucks, Thanks for the info.
DaddySawbucks alanmasters
@alanmasters, YVW tyvm for posting. Stepping stones continue today- pattern intact, next stop back at 25500, then 25350, 25200...(!?)
Hello, my only opinion,.. Totally agree

Best whishes,

+2 Reply