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Chart of the Week: Dow short term trend break

Posted By Barry Ritholtz On January 15, 2004 @ 2:31 pm In Finance | Comments Disabled

The Dow’s trend line from late June to early December has notably accelerated the past few weeks, taking the index into an overextended condition. Combined with the recent break of the 8 week trend line suggests a possible moderate correction.

DJIA breaks short term uptrend (2 Months)
(click for full size chart)

DJIA [1]

Source: Gary B. Smith, RealMoney.com [2]

The longer term uptrend is still well intact, with support coming in at 10,200 and 9850 on the Dow. We expect any short term correction, barring new information or events, to be less than 7%.

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Quote of the Day:
“Here is the conclusion on which I base my facts.
- Adlai Stevenson [9]

Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2004/01/chart-of-the-week-dow-short-term-trend-break/

URLs in this post:

[1] Image: http://bigpicture.typepad.com/comments/DJIA.html

[2] Gary B. Smith, RealMoney.com: http://www.thestreet.com/p/rmoney/techforumrm/10136827.html

[3] A Trade Miracle: Volumes Shift, Prices Don’t: http://quote.bloomberg.com/apps/news?pid=10000039&sid=a7ojui7xkjuo&refer=columnist_baum

[4] CES 2004: Technology Trends: http://www.extremetech.com/article2/0,3973,1435694,00.asp?kc=ETRSS02129TX1K0000532

[5] The big payday: http://money.cnn.com/2004/01/14/markets/taxbreak/index.htm

[6] How Parmalat Differs From U.S. Scandals: http://knowledge.wharton.upenn.edu/whatshot.cfm

[7] It’s hard to be a Bear these days : http://cbs.marketwatch.com/news/story.asp?guid=%7BD25826C4%2DA80A%2D429A%2D9F8E%2D530E175A20ED%7D&siteid=mktw

[8] Is the balance of scientific power shifting? : http://www.nature.com/cgi-taf/DynaPage.taf?file=/nature/journal/v427/n6971/full/427190a_fs.html

[9] Adlai Stevenson: http://gi.grolier.com/presidents/ea/side/stevnsn.html

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