atans1

Dow Jones divergence

In Financial competency on 23/02/2012 at 6:36 am

Keep an eye out on the DJ transportion index. The rises in oil prices have naturally affected the stocks on this sub index. Now if the DJ main index keeps going up while the transport index keeps weakening, this could be bearish for US equity markets. Traditionally such a divergence has led to a fall in the main DJ Index.

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