Tuesday, February 4, 2014

INDU Dow Jones Industrials Daily Chart Loses 200-Day MA

The Dow loses the 200-day MA at 15470; a very bearish indication and the first time this occurs since late 2012 over one year ago. The Dow is now down -7.4% off the market top at the start of the year. The stochastics and money flow are developing positive divergence so a recovery rally would be expected, however, the weak and bleak RSI, histogram and MACD line all want to see lower lows after any bounce occurs. The RSI sneaks into oversold territory now but money flow still has not. There is strong support for the Dow at 15150-ish.

Use the 200-day MA as a simple guide forward. Bears are happy campers if price stays below 15470. Bulls will stage a come back rally if they can regain the 200-day. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

Note Added 11:05 AM: The Dow remains under the 200-day MA at 15474.12, now printing 15434.13, nullifying hopes for a recovery rally, so far.

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