State of Dow Jones - Calendar Week 41 2021

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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 tradingview.com): 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

NASDAQ 100 - Interesting Monday ahead (29.08.2021)

NASDAQ 100 - How the new week could start

The NASDAQ 100 has delivered. I don't know if we are going to see a new record high every week until the Tapering begins, but the strength of this index is remarkable.

While we can not make any predictions for the next months, we still can look how the chances are for the NASDAQ 100 on Monday.

NASDAQ 100 Market Breadth Data


The image above shows the market breadth for the index NASDAQ 100.

What you can't see is that the NASDAQ 100 is moving along a rising trend line, starting on 16.02. and touching it on 26.07., 24.08., 25.08 and on last Friday (27.08.).

It looks like that the NASDAQ 100 has troubles crossing this trend line, and often the index touches the upper Envelope band, which is usually a sign of overheating. So there are already two limiting factors, and it might take a very strong impulse for the price to overcome those limits. It is more likely that the NASDAQ 100 will slowly advance along those borders.

In addition, Advanced vs. Declined raw data also reached an extreme on Friday. Chances are high that this data declines, moving in the opposite direction.

So, for Monday, it is unlikely that we are going to see huge gains. Instead, we might see a small decline.


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