State of Dow Jones - Calendar Week 41 2021

State of Dow Jones - Calendar Week 41 2021 Welcome to the second episode of the blog post series "State of Dow Jones", where we look at the leading US stock index from different perspectives and try to determine how solid the current development is. Technical Chart for Dow Jones Every "State of Dow Jones" blog post should start with the technical chart, so here we go (created on The Dow Jones overcame the old falling highs and the important resistance at 25 000, now trading at 35 294 points. The index is trading above its SMA 20 again and even went into the upper Envelope band. This means the Dow is slightly overheated and it is likely that the index will show a small pull-back before rising again. The RSI is at 60, three trendlines were identified and crossed during the last trading days. The technical chart provides us with enough confidence to say that the correction might be over and the outlook is neutral, or maybe even slightly bullish. Marke

18th August 2021 S&P500 Dow Jones Nasdaq 100 Market Breadth


Fed minutes causing drops in major US indices

Today's published Fed minutes indicate that there are thoughts about ending the money flood this year instead of next year or the year after. This led to a small sell off.
Now, market breadth data - including today's trading day - is interesting.
All three major US indices that are listed below - the S&p 500, the Dow Jones and the NASDAQ 100 - reached extreme values for their Advanced vs. Declined data.
Usually, if such an extreme is reached, there is at least a small reaction in the opposite direction.
It will be interesting to see on Thursday if the markets realize that today's news weren't so bad at all. Will the markets calm down tomorrow?



S&P 500


For S&P 500, the McClellan Summation Index is still in a good place. The short-term indicator McClellan Oscillator, however, is negative the second day in a row.

Dow Jones

The Dow Jones McClellan Oscillator has a negative value again, after being positive for 8 subsequent trading days. The McClellan Oscillator is still positive, but is also not so far away from the zero line.

Source for market breadth data:




For Nasdaq 100, the McClellan indicators show an ongoing negative trend. Will this development continue since the Fed minutes were actually bad news for the tech sector?

Source for market breadth data:


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