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

Mini break for NASDAQ 100 - for now

Mini break for NASDAQ 100 - for now

The NASDAQ 100 took a mini break from chasing new record highs and is now trading within a narrow range.

Technical chart (daily) for the NASDAQ 100


Technical chart (daily) created at tradingview.com

The technical chart with the simple Envelopes reveals that the index is no longer considered as overheated and the RSI confirms this.

The distance to the SMA 20 remains high but declined a little bit.

One earlier high at 15447 serves as a level of confidence while one level above, at
15526, proved itself as a level of support, setting the lower limit for the current trading range.
 
As long as the index remains above 15 447 on the daily chart, there is nothing to worry about.
 

Technical chart (hourly) for the NASDAQ 100


 
Technical chart (hourly) created at tradingview.com
 
Talking of trading range - the hourly chart of the NASDAQ 100 with modified Evenlope settings gives a nice impression of the current range where a mini break and mini consolidation are taking place right now.

I think there is not much to add at this point - let's see if the NASDAQ 100 will leave this range downwards or upwards.


Looking only at the technical chart, the index is still moving within a strong upside trend with a nice distance to the SMA 20. Nothing to worry about (yet).
 

Market Breadth Chart for the NASDAQ 100 

 
 
On our market breadth chart we've been including the Envelope bands for quite some time now. The index still trades within the upper band, being slightly overheated, but this state is wearing off already (and remember, the Envelope bands also advance and usually catch up with the price at some point).

The Advance Decline Line for NaSDAQ 100 follows the price - no clear divergences here.
 
Advanced vs. Declined for NASDAQ 100 is no longer at an extreme value and reasonable for this trading day.
 
The McClellan Oscillator for the NASDAQ 100 is below the zero line with a relatively low value.

The McClellan Summation index stopped to rise and declined again. I am sorry for the spike in the data here (see third last bar at this indicator). I have to check what went wrong there.

At the moment, market breadth data reflects that the NASDAQ 100 stopped to advance rapidly and took a small break. I don't see any warn signs here.

 

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