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

Nikkei 225: Buy signal close?

Nikkei 225 Japan stock index: Is a buy signal close?

 

The technical chart doesn't look so good for the Nikkei 225. It has been showing lower lows for quite a while now and it failed to form a bottom during the last two weeks.

Let's check where we are standing with the market breadth data?

 


As you can see, the long-term indicator McClellan Summation Index formed a top and then began its rapid decline. It's a positive thing, however, that it did not decline any further during this trading day.

The short-term indicator McClellan Oscillator has been below the zero line for 6 days in a row and is now near zero again. 

Some consider crossing the zero line a buying signal, so one could hope for a good trading session tomorrow and then have a trigger for a long trade.

It's not so clear for me, though. The secondary trend of the Nikkei 225 is downwards, meaning one would buy against the current trend. So if you are looking for a buy signal, maybe combine positive market breadth data with classic chart data. E.g. wait for the index to trade higher than this intermediate top on 12.08.2021 and check if market breadth data supports this.

Please also note that we have an upcoming event risk this week with the US Fed meeting.


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