DJI Index

[viktor_k67]

The DJI index is only 1.22% up for 2015. See below at the DJI index components' charts.

I have divided the 30 DOW stocks into four group: 1) stocks with bullish sentiment, stocks which are in side-way range trading with slightly bullish bios, 2) stocks where bearish sentiment defined clearly and 4)stocks in side-way trend with some bearish signs.

As you may see from the charts below the situation is quite unstable - we have 8 clearly bullish, 7 slightly bullish, 8 clearly bearish and 7 slightly bearish stocks. And this is at the top of the DJI Trend. The DJI is not as bullish as many would like to see. Smallest shift in the bullish stocks toward the bears may actually push the DJI index into a strong correction. Basically, we have the DJI index in side-way action since February 2015. I guess the main question will be whether such strong stocks as CSCO, NKE, JPM, DIS and IBM be able to hold the DJI index until the other bearish stocks hit the bottom of their bearish trend.

Bullish Stocks

Slightly Bullish Stocks

bearish stocks

Slightly bearish stocks

 

[viktor_k67]

For a couple of minutes this article was on the Yahoo finance
http://finance.yahoo.com/news/dow-brick-wall-waiting-collapse-120000187.html
where Louise Yamada pointed on the divergence between DJI and DJT by putting emphasis that it usually happens before a strong correction down and the possibility of 10-20% correction this summer.

On the chart below you may see the divergence between DJI (black bars) and DJT (orange line) started at the end of March 2015

Chart courtesy of marketvolume.com

 

[kalott]

The DJI index is only 1.22% up for 2015.

and >200% up since 2009 (SP500)

 

[viktor_k67]

and of course it will not crash 200% down.

If the fact that DJI made 200% over the past 6 years is the only argument that should keep people investing then I rest my case.

 

[tomorton]

Interesting to see the emphasis you give the DJT. I don't follow indices and stocks that closely but it is quite rare to see the DJT get much analysis.

Oscar Carboni (https://www.youtube.com/user/futuresanalysts) does TA it and is very clear that he believes it is the leading indicator of US stock strength over the other indices, though he doesn't seem to trade it.