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

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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