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 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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