Tag Archives: $DJIA
A recent rapid decrease in the correlation of Dow Jones Industrial Average components with the index itself could be a leading indicator of a bear market as this has also occurred in the past around the 2000 and 2007 tops.
Any comparisons with the distant past may be meaningless since underline market conditions are different but it is interesting that the Dow Jones Industrial Average RSI(14) has stayed above 70 for 28 days, something that has not occurred since 1944.
The Dow Jones Industrial Average stayed overbought for the whole month of October in the sense of a classical technical analysis measure. This has only occurred three more times in the last 103 years.
The Dow Jones Industrial Average has been in overbought territory since the first trading day of this month and for a total of 10 days, according to a popular technical analysis indicator. But usually overbought conditions occur along uptrends.
The Dow Jones Industrial Average is gaining nearly 13% year-to-date on a total return basis with longer-term returns showing a mean-reverting tendency. According to this analysis and assuming mean-reversion persists, this index could rise anywhere up to 35% in the … Continue reading