Dow Jones Industrial Average Monthly Chart Analysis (30%+ Crash)

2022年1月26日

Here we have the Dow Jones Industrial Average (DJI) on the monthly timeframe.

We have some different signals compared to the SPX and NDX but the overall picture is still the same.

The market is topping and early bearish signals are starting to develop. In fact, some of these signals are early no more.

Looking at the monthly timeframe, the DJI is still trading above EMA10 which tells us that the bulls have the upper hand.

This monthly candlestick though is leaning towards the bears, once EMA10 fails as support, the bears are back in front.

We have two rising wedge patterns.
The first one showed from 2018 to 2020 and was followed by the strongest correction in over a decade, while the second one started in late 2020 until now...

The rising wedge pattern is bearish.

We are likely to get a bearish confirmation as this monthly candle closes.

The MACD has peaked and is now trending lower.
The RSI has been printing lower highs for a while now and is becoming weaker.

Watch out!
The crash can happen fast as it can happen over a period of many months.

Do your best to prepare for the long-term.

Remember, corrections are a normal part of the market cycles and we tend to become stronger each time one of these shows up.

Thank you for your time.
Thanks a lot for your continued support.

Namaste.