The Dow Had A Bearish Signal Last Week, And That Signal Has Only Intensified

VantagePoint Trading Software is a forecasting apparatus that uses both finish of day information and synthetic comprehension to yield traders a foresee of marketplace movement. These forecasts are 1-3 days in allege and assistance traders urge their timing on creation trades and maximizing distinction potential. The synthetic comprehension program forecasts marketplace transformation for stocks, futures, forex, ETFs and cryptocurrencies. 

This past Monday was one for a record books, and will be a day many traders remember for a while. The violent sensitivity seen progressing in a week mostly creates it formidable to trade particular equities, save for a many glass underlying securities. Even with a amply glass underlying, a increasing sensitivity can infrequently chuck technical support and insurgency levels out a window. 

So instead of focusing on an particular stock, this week’s trade biography will concentration on an ETF that marks a Dow Jones Industrial Average: The SPDR Dow Jones Industrial Average ETF (NYSE: DIA).

The VantagePoint Trading Journal On The Dow Jones ETF

Let’s demeanour during a three-month draft of a fund. The black line is a elementary 10-day relocating average. The blue line is a likely relocating normal that predicts where a relocating normal will be in dual days.


Using a predictive indicators embedded within VantagePoint and a predictive AI technology, we will indicate out dual poignant things. Notice how a dual relocating averages crossed over on Jan 31. That indicates a commencement of a bearish trend. The green-red bar during a bottom is a Neural Index that predicts strength and debility over a subsequent 48 hours. The coexisting change to red indicates near-term weakness. 

Of course, a account is down 7 percent in a 7 trade days given this bearish signal. And Monday saw a biggest indicate dump in a Dow’s story (the index fell 8 percent on that day alone). 

As of this writing, a dual relocating normal lines have usually diverged further, indicating a bearish trend is total (even yet a Neural Index’s change to immature indicates proxy strength). As prolonged as those lines do not cross, design debility in a index and a supports that lane it. 

This will be something to watch closely in a entrance days and weeks, as a Dow Jones has extended implications for a altogether market. 

VantagePoint is an editorial partner of Benzinga. For a giveaway demo of a platform, click here.

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