Courtesy of John Nyaradi.
Dow Jones Industrial Average falls for the week and issues technical “sell” signal
Charles Dow
The Dow Jones Industrial Average (NYSEARCA:DIA) fell 1.7% on the week as investors fretted over potential tapering by the Federal Reserve and the upcoming FOMC meeting took center stage.
The Nasdaq Composite (NYSEARCA:QQQ) dropped 1.5% for the week while the SP500 (NYSEARCA:SPY) lost 1.7%.
All eyes now turn to next week’s Federal Reserve meeting and Chairman’s press conference scheduled for next Tuesday and Wednesday and what the future holds for the Fed’s $85 billion/month bond buying program.
On My Stock Market Radar
Dow Jones Industrial Average Issues “Sell” Signal
A popular form of charting, point and figure, issued a “sell” signal for the Dow Jones Industrial Average (NYSEARCA:DIA) on Thursday, December 12th.
In the chart below, the point and figure chart indicates a “double bottom breakdown” on December 12th with a preliminary bearish price of 15,400. The index is 342 points, approximately 2%, off its recent high of 16,097 but still remains well above its blue bullish support line and 200 day moving average of 15,189.
Other weakness is seen in the shorter term exponential moving averages as the index has fallen below the 20 day exponential moving average and rests just above the 50 day exponential moving average.
Nevertheless, the index still sports year to date gains of 20%.
On the downside, initial jobless claims spiked higher and missed expectations while producer prices declined.
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