September 10, 2016
What a Day for Dow Jones Industrial Average – slide?
On September 8, ^DJI closed 18479. On September 9, ^DJI opened at 18404 a gap down. The market pushed the index to 18414 high but DJI failed to it 18080 low on the same day. The index end the day and closed at 18085. The day range of 334, a second biggest single day slide after Brexit caused by the rate hike speculation. True or true? More than 400 points drop.
Times of Panic
There was a mass selling on all asset classes including and most importantly the treasury bond and treasury note markets. Nothing was spared with the exception of a few commodities like cattle continue with the past weeks bullish.
This is a second biggest single day drop after June 24, the Brexit chaos.
You can read the story by bloomberg, http://www.bloomberg.com/news/articles/2016-09-09/u-s-futures-little-changed-with-s-p-500-stuck-in-two-month-lull –
U.S. Stocks Slide the Most Since Brexit Amid Rate Speculation
Dow Jones Industrial Average ^DJI
DJI crosses up 20 MA, 50 MA and 100 MA; bullish trend after MACD signals there is likely end of trend and change in price action direction. Price retest the and low, MACD forms a high low. Thereafter, the price action bouncing off the MA and stay above MA.
Starting July, we see a divergence, price action retest the same high and MACD forms a lower high. MACD signals a end of trend. So, look out for a change in price action. In fact we has discussed this before, see link for more details. http://www.amibrokeracademy.com/amibroker/dow-jones-industrial-average-and-macd-amibrokeracademy/.
Remember Trend and Setup Can Fail
September 9, 2016 Dow Jones Industrial Average and MACD
Moses Stock Analysis
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