The Dirty Thirty (Dow Jones Industrials; INDU; DJI) rally for 13 consecutive days a streak not seen since 1987. The orgy is in full swing with Dow futures indicating a positive start for day 14. Timmy Trader is waving around fistfuls of cash profits from the rally enjoying his new life as a Chick Magnet. What happened in 1987? Oh, don't worry, it's different this time.
The previous SPX daily chart, which is the US stock market, is topped-out on the daily basis (depending on what news comes across the wires) but you can see that the Dow stocks are still displaying long and strong RSI and MACD that want to see another high in price.
The histogram, stochastics and ROC are all neggie d wanting the Dow stocks to begin a multi-day selloff. The RSI and stochastics are overbot agreeable to a pullback. The red rising wedge is bearish. Dow stocks may slump for a day then come back up (a jog move down-up) and at that time check the RSI and MACD. If they are neggie d then the top will be in; it should occur anytime over the coming days, the chart will signal when.
The Aroon shows 100% of the bulls believe stocks will go up forever and comically nearly 90% of the bears believe stocks will go up forever. That's funny. Price is extended above the moving average ribbon so a mean reversion lower is needed. The upper band is violated so price will need to back check the middle band, the 20-day MA, at 34581, and the lower band at 33473 is also in play going forward.
Look at the volume candlesticks; 13 up days but the biggest up volume day during the rally is nowhere near the two largest volume selloff days a few weeks earlier. Price will need to come down to test the price levels corresponding to the two big selloff days in late May and mid-June.
The blue lines show the textbook 2-leg bull flag pattern. First leg up is 31740 to 34070, you can fine tune the numbers if you want, Keystone is eyeballing off the chart, so that is a difference of 2330. The sideways consolidation period occurs (flag or pennant), with a slight downward bias, and a second leg higher looks like it wants to begin from 32800-ish so adding 2330 is 35130. Bingo. Old guys say bingo a lot. The 35130 upside target is achieved satisfying the 2-leg bull pattern.
Will the Dow be able to log 14 days of upside or does it stop at 13? The negatively diverged indicators want price to receive a spankdown now in the daily time frame so that should begin today or tomorrow, but, as stated, price will want to come up again due to the long and strong RSI and MACD, and then likely top out with universal neggie d anytime during the days forward. Simply watch the chart and you can call the top. 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 6:37 PM EST: The Dow pukes 237 points, -0.666%, to 35283 with an outside reversal candlestick. The winning streak ends at 13 days. If the Dow was up today for 14 days, it would have been the longest winning streak since 1897 (126 years ago), back when politicians Biden, Trump, McConnell, Pelosi, Feinstein, Grassley and Schumer were born; fossils all. The Dow started in 1896. Wooo, doggie, well look at that. The Dow price makes a matching and higher high today and ALL the chart indicators go neggie d. Both the RSI and MACD line are sloping down as price went up so the neggie d spankdown was on tap, identical to the SPX daily chart that is posted, and the Dow was spanked down today and should remain weak on the daily basis ahead.
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