State of Dow Jones - Calendar Week 42 2021

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Hi folks! Welcome to another part of the blog post series State of Dow Jones for Calendar Week 42 2021 Part three already. This week has been incredible for those that invested into the Dow Jones. But how healthy is the current price development and what's the outlook?   Technical Chart for Dow Jones Every "State of Dow Jones" blog post should start with the technical chart, so here we go (created on tradingview.com):   The Dow Jones managed to trade above its SMA 20 and also overcame the turquoise trendline / flag which happened to be at the 35 000 resistance level, which became a support shortly afterwards. The index only knew one direction during this week - upwards. The current price movement stopped a few points above the old all-time high and within the upper Envelope band. On the daily time frame, the index now looks slightly overheated. For now, the old all-time high around 35 631 holds, but it wouldn't be a big surprise if there was a small pull-back before t

State of Dax - Calendar Week 29

State of Dax - Calendar Week 29

As usual, I'll walk you through the state of Dax, according to market breadth data.
We're in calendar week 29 and have an interesting trading week behind us!
Let's look at the latest information.
 
 

 

Advance Decline Line and Advanced vs. Declined for Dax



McClellan Oscillator and McClellan Summation Index for Dax



% of Dax members above SMA50, SMA100 and SMA200


 
 
Last week's "State of the Dax" blog post mentioned that for the SMA50 a  threshold was reached. More than 50% of the Dax members traded below their SMA50, which means they switched to a downside trend. We're still below that 50%.
 
 
 
 
I also stated that for the Dax members trading above their SMA 200, a critical threshold was reached (but not breached yet). I claimed that it would not be a good sign if this number decreased any further, but then the huge dip came on the next trading day. Let's see what this graph looks like today:

The 80% threshold was breached, the graph went down to 63,3%. After the 19th July, the percentage of Dax members trading above their SMA200 was on the rise again. We're now back at 86,7% which fits it very well in the range we had before from 11th May until last week. Note that 86,7% seems to be a resistance level.

By the way: The last time the percentage of Dax members above their SMA200 reached 63,3% was back in March. Afterwards, it took the Dax members one month to climb to the peak of 96,7%.
 

Summary

This week's dip in the Dax was a small opportunity for all those who like to do short-time anti-cyclic trading. 
Signals coming from breadth indicators don't point downwards, but not upwards either. During the next 1-2 trading days, we might see a small price decline again because there was such a strong reaction on this week's dip.





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