August 8, 2017 / 1:32 PM / a year ago

BUZZ- DJI's record run can lead to reckoning

** DJ Industrials has now seen 10 straight higher daily closes, and 9 straight record high closes. Chart:

** Longest streak since Feb of this year when the index put together 12 straight higher daily closes, which also happened to be record high closes

** That Feb run matched a 12-day period of record high closes in Jan 1987, and that 12-day run was the longest such streak in the history of the DJI going back to 1914 (Thomson Reuters data)

** As the DJI's streak was ending this past Feb, daily RSI ultimately stalled shy of its Dec top, for a case of negative divergence

** Indeed, once the Dow's streak terminated on Feb 28, the index topped 1 trading day (td) later, sold off 3.7 pct over next 34 tds

** With this current run, RSI severely overbought, and now pressing study resistance line across its Dec/Mar peaks

** Thus, momentum ripe for topping, DJI vulnerable to reversal; initial support 21681

** So far in 2017, DJI has seen 35 record high closes, the most since 38 in 2014

** Index narrowly driven with Boeing, Apple, and UnitedHealth responsible for nearly half the Dow's YTD rise; BA alone, 25 pct

** Meanwhile, other major avgs, both domestic and overseas lagging DJI on its record run

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below