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 unchained on 30.08.2021

NASDAQ 100 Unchained


Despite my estimation I published with yesterday's blog post, the Nasdaq 100 managed to climb another 1,12% today. 

What's our perspective on the current situation?

 

NASDAQ 100 Market Breadth Data and Envelopes


Source: Nasdaq 100 Market Breadth Data 

 

The price stopped at the top border of the upper Envelope band. Really, chances are now very high that the price will move into the opposite direction during the next trading day. Breaking through the upper band is a rare event and happened once per 3 months during the last year (it's not entirely correct, but you get the point).

Nasdaq 100 Advances vs. Declines actually declined today. The McClellan Oscillator gives very bullish signals while the McClellan Summation Index is moving towards the zero line with medium speed.



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