JNJ Short Idea

The Dow looks pretty weak right now to me and as we've seen the mag 7 rally relentlessly. I've been avoiding shorts on tech and semis because they are driving the majority of this rally and shorts have not worked. The Dow has been fairly strong, it is near ATH with everything else.

However, there have been a lot of bearish stocks in the Dow such as NKE and DIS, which is where I have focused my shorts recently. I think it may be time for tech to weaken, but it looks like the Dow will as well. NKE and DIS are a bit too low for me to want to short, but I think there's still some good opportunities on stocks like JNJ.

This is a shorter term time frame, but if you zoom out you can see that the ascending trendline shown above, goes back to a major uptrend from 2016. It recently rejected off that trendline and the descending one above. I'd say it's quite bearish to see a break below and rejection of a 10 year trend. I expect downside to continue here for a good while, unless the Dow can hold up and remain strong.