Dow Jones ($DJI) Chart - June 6, 2008
I left the day on Friday thinking we had a long rough road coming for this market. Now I’m not sure since I charted the Dow Jones Industrial Average (aka DJIA and ticker $DJI). The DJIA closed the week at the point of two trend lines that could offer some support.
Aside from the lines that that offered support on Friday, we can’t say we didn’t have warnings from a technical view earlier. First in mid-May the Williams %R indicator moved below the overbought line, which I’ve pointed out a few times in the past is the point to be concerned. Not long after that, as the fall continued, the trend line that excluded the absolute lows from March broke, but recovered quickly. That was when the red flags should have started going up. The huge move that should’ve shot out the warning flare came at the beginning of last week when the $DJI moved […]
Original post by Alex Fotopoulos