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
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Dow Jones latest market breadth

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Latest Dow Jones Market Breadth Data

 

Dow Jones market breadth chart by https://www.advance-decline.net


I've added some new tools that allow me to view more historical market breadth data for Dow Jones. I can now look back from April 2020 until today and this helps me to understand how the Dow Jones is doing today.

Similar to the graphics I use with the state of DAX, I will generate this market breadth dashboard only when writing blog posts. I've not automated everything yet, so there can't be automated uploads to the website.

The McClellan Oscillator for Dow Jones is below the zero line, but advancing. This doesn't look that bad.

The McClellan Summation Index for Dow Jones declined, and compared to its high from May 2021, it's a huge decline (from ~ 48 to ~ 4,6). This is bearish.

Some words on the technical situation: At the moment the Envelopes are not touched, so the index is not oversold. The index is trading below the SMA 20, though, and the RSI is still below 50. The SMA200 seems to act as a support for now.


New: Percentage of Dow Jones members above their SMAs

 

Dow Jones market breadth chart by https://www.advance-decline.net

 

I am happy to announce that from now on, I will be able to supply you with the following data:

  • What is the percentage of Dow Jones members/components trading above their SMA50?
  • What is the percentage of Dow Jones members/components trading above their SMA100?
  • What is the percentage of Dow Jones members/components trading above their SMA200?

I believe that this data helps to determine the health state of the Dow Jones.

At the moment, 33% of the Dow Jones members trade above their SMA50, 40% trade above their SMA100 and 60% of the Dow Jones members trade above their SMA 200.

As shown in the chart above, those numbers have been declining since mid April 2021. Today's numbers are almost comparable to what we've seen during the huge dip in Nov 2020.

According to this data, the Dow Jones is weak, but at least it looks like a bottom was found for SMA data (for now). This lets me hope that the Dow Jones will recover soon.

 

 

 

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