Sunday, January 28, 2007

The DJIA Weekly Chart - Is the Rally OVER?

Looking at the weekly chart of the Down Jones Industrial Average it appears that the DOW 30 is ready to take a breather at the least. The DJIA has broken down from its up channel and may be ready to break down from a bearish rising wedge.
The MACD looks like it is rolling over and ready to crossover. The RSI is in overbought territory and has been for a while. The DJIA has been the major market barrometer for the mainstream media and commonfolk. It is what most mainstream media outlets use to confirm the bull market in stocks.
The DJIA has shown incredible resilience for several years now and seems to defy gravity. How long can this last? Maybe forever!
Dare I say, look out below?
Probably not, but it looks like it.