We looked at the S&P 500 Index (SPX). We saw some bearish signals that are pointing to a price drop.
The Dow Jones (US30) and SPX tend to move together... This one is already in the red... Let's have a look.
Dow Jones Bearish Chart Signals
First, we have prices already trading below EMA50.
Yesterday's candle closed below this important level.
The market closes on the weekend... Potential "blood" on Monday.
The MACD is already below zero and trending lower. The histogram being red now for many consecutive days.
The RSI is weak while aiming lower.
The trading volume is red, red, red, red as well as past 9 daily candles.
Past action - Oct. 2020
In the past, when the Dow Jones closes below EMA50 a strong correction becomes possible.
Here it might still be early since yesterday's candle isn't that strong... But another bearish candle below EMA50 and we are likely to see a strong drop.
Get ready... Crash ahead.
Thanks a lot for reading and for your continued support.