One of DJI's Confirmations Not Looking Good - DJT
As is suggested by the heading even though we're seeing a rebound of DJI's rally one of it's confirming indicators is showing weakness. For the most part we use the Dow Jones Index as loose indicator of the overall economy, when it's performing well, on it's face, we discern that the economy is humming along well. As a confirmation for the thought process we use the Dow Transports Index, among others, and discern from if the rally is real or not. The reasoning being, as an index that follows the biggest transporting companies within the economy, it's reasonable to think if transports are performing well then commerce within the economy must be doing well. So, when DJI is rallying and it's confirmed by the DJT, along with other factors, we can discern that the economy is performing well. I'll move onto the analysis, to explain how the index is tracking.
Weekly
1. Noticed that there's been high volume in the last two years of trading relative to long-term trend, 200-moving average.
2. It's been trading in a channel YTD which is confirmed by relatively accurate tracing stochastic indicator.
Daily
1. Within the YTD channel, there's an interior resistance that's quite robust. That's where we find the index, today-July 25, 2018, and as with the other reactions from that interior resistance it's retracing back to the bottom of the channel.
2. The Stochastic indicator is tracing accurately with the index, which is on tracing downwards confirming the hypothesis.
Conclusion: The Dow Jones Index has been on an upwards trend but one of the confirming indicators is showing that that might be a faux-upswing. In terms of the overall economy, we're starting to see that the market starting to be affect by the tariffs and the trade war.
Weekly
1. Noticed that there's been high volume in the last two years of trading relative to long-term trend, 200-moving average.
2. It's been trading in a channel YTD which is confirmed by relatively accurate tracing stochastic indicator.
Daily
1. Within the YTD channel, there's an interior resistance that's quite robust. That's where we find the index, today-July 25, 2018, and as with the other reactions from that interior resistance it's retracing back to the bottom of the channel.
2. The Stochastic indicator is tracing accurately with the index, which is on tracing downwards confirming the hypothesis.
Conclusion: The Dow Jones Index has been on an upwards trend but one of the confirming indicators is showing that that might be a faux-upswing. In terms of the overall economy, we're starting to see that the market starting to be affect by the tariffs and the trade war.
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