DJT move since 24 December looks like an impulsive 5-wave pattern (With RSI divergence). Retracing to 10k is possible with coming earnings reports and profit taking. 10k - 9.5k will offer good risk/reward ratio. It would be wise to keep an eye on this.
Dow Theory principal of market analysis rests on the premise
that the Industrial Average,Transportation Average, and Utility Average
should all be in gear together in a confirming signal of unison
about both the markets and the economy's state of health.
If one index diverges from the others, and it persists for a while, it is a notable warning sign that...
Be aware this is a longterm idea for the whole markets. Nothing is granted in this game. Don't follow this idea blindly. This is just to keep you aware of possibilities, not to tell you what to do.
For me things are lining up very well.
* Don't just look at SPY and QQQ other markets doesn't look that strong right now.
Alright. Four Charts. Weekly charts.
I've been watching the DJT over the last couple of weeks because it's kept a very tight price pattern and has suffered from little consolidation whipsaw. It's a good leading indicator over the SPX and DJI, and showed the current broad market reversal a week before the other two.
Friday's upward action is likely a short squeeze from the bears closing their...
One of indicators to measure the US economy (and therefore SPX) still remains the transport index, and as shown on the chart, this indicator may have completed the upward movement (or almost). That said, in the coming weeks we will continue to monitor the support, and if it is broken, it is possible to develop an interesting bearish leg.
- Weekly RED doji (the only one from all major indexes)
- Airlines are dropping from the sky in Europe and India and soon in North America (? or am i going too fast ?)
- Truckers are not feeling amazing either
Where rubber meets the road is the true financial struggle and THE REAL CUSTOMER SENTIMENT MATERIALIZED.
Keep an eye on this stocks... airlines,...
$DJT is down 22% from its peak and is coming into long term support - 200 week MA and the top of a previous rally at about 9000. Also the RSI has shown support at these levels in past corrections as shown. The speed and severity of the correction while the economy is still in good shape, though cooling off a little, suggests a nice bounce is coming.
This chart shows the DJT and the DJI. The transportation index has historically led the industrials. I expect the industrials to follow transportations on its way down in the coming months. End of the year rally could support the industrials, however; going into 2019, barring any big news on the trade issues, I see the US markets falling significantly.