Finally, on yesterday's close -- some actual movement out of the tight "line" formation in the Dow. Industrials down 108, Transports down 99. What does that tell us? Nothing, at least, so far. But the potential implications are important. What we now have is the first sign of weakness in a market where there exists a primary non-confirmation in an overbought market that has not corrected.
Below we see the Dow still holding within that narrow line formation. RSI has turned down, and MACD looks about to turn down. A Dow close below 13,900 should send the Dow lower.
Below, a point & figure chart of the Dow. The last long column of Xs implies that the Dow is very extended and should be in line for a correction. The Dow has advanced from the 12,500 box to the 14,050 box without so much as a three-box correction. Any correction which takes the ... Log in or subscribe to continue reading.
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