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

State of Dax - Calendar Week 31

State of Dax - Calendar Week 31

Welcome back to another episode in the "State of Dax" blog post series.

The German stock index DAX climbed again, now residing near its alltime high.

It will be very interesting to see if this index will beat its own record although August is a weak trading month according to seasonal statistics.

But well, let's see - what is the current state of Dax?

Advance Decline Line for Dax, Advanced vs. Declined, McClellan Oscillator and McClellan Summation Index, % of members trading above their SMA50/100/200

Again I took a screenshot of my latest charting dashboard, containing all the interesting stuff for this stock index.


Let's check every indicator:
  • The Advance Decline Line is almost a perfect mirror of the index; this supports the current price movements
  • Advanced vs. Declined slowly advanced during the last trading days, almost forming a clean upwards trend. Neutral..
  • McClellan Oscillator for Dax: Above the zero line again, Slightly bullish. Let's wait for more data here.
  • McClellan Summation Index: A bottom was formed, the indicator is now moving upwards towards the zero line. Anti-cyclical traders might find this situation bullish, cyclical traders wait for the indicator to cross the zero line
  • Percentage of Dax members trading above their SMA50: Climbed to 60%, which is the highest value since mid of July
  • Percentage of Dax members trading above their SMA100: Climbed to 60%, highest value since beginning of July
  • Percentage of Dax members trading above their SMA200: Actually declined a little and is now back at 80%; no warning signal here

It might come as a surprise, but at the moment, the German stock index Dax seems to be a little bit stronger than usual during August. The market breadth data supports the current attempt to reach the all time high. In my chart, the Advanced Declined Line for Dax already reached a new record. Chances are not too bad that we see a new all time high for this index soon. However, since we are in August, I doubt that this would be a large breakout from the current trading range.

 



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