Technicals - Dow Jones technical sell signal generated
The Dow Jones has completed a technical top formation / closed below key support, generating a technical sell signal. The index technical outlook has turned negative. The minimum downside technical target is located at 17,600 - the minimum expectation for a pullback. It is interesting to note that the Dow Jones has activated a technical sell signal within a week of the US 10 year bond yield experiencing a trend change as highlighted in previous Wire (VIEW LINK). Currently there is no potential for technical top formations to be generated on the other key US indices - S&P500 and Nasdaq - but both are approaching overbought levels on a momentum basis, which is reason for caution from a technical perspective.
Angela has over 30 years experience in the technical analysis field. She provides technical analysis coverage of major Australian and global stocks / key markets, including provision of a bespoke technical service to wholesale clients.