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

NASDAQ 100 Market Breadth - Will this index continue to advance?

NASDAQ 100 Market Breadth - Where will the leading tech index go?

Yesterday I already covered the Nasdaq 100 index and its market breadth data. Today I want to check what changed and if I was right about today's development:

Advanced vs. Declined reached a positive extreme today, so there is a high chance that the index will have only small or no advances during the next trading day at all. 

This turned out to be true. The Nasdaq 100 gained 0,29% today, which is good, but it's not a big jump. Advanced vs. Declined Data was in good balance today, so for tomorrow, there would be much room on the positive and the negative extreme.

Technical analysts might look at the chart and see three things:

  • There was a light bearish divergence with the RSI during the last weeks (but it's resolved now)
  • The NASDAQ 100 is near a topping trend line which was touched end of July for the last time
  • The NASDAQ 100 reached the upper side of a statistic corridor, meaning it is highly unlikly that it is advancing much higher for now (I'm referring to the Envelopes indicator, but actually the top of the Bollinger bands with standard dev 2 was also reached)

Looking at those indicators, chances are high that the Nasdaq 100 is slightly overheated and needs to cool off for a couple of days. I do not expect a vast climb during the next days. But for the next weeks, I'm bullish.

Hopefully the Fed won't have too negative news for us, otherwise the reactions on the stock markets might be a bit extreme.


Want to view the latest market breadth data for NASDAQ 100 and other indices?

 


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