This Chart Shows The Dow Jones Industrial Average Reaching A Critical Technical Level

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February 17, 2018 7:13am INDEXDJX:.DJI NYSE:DIA

From Chris Kimble: Technical analyst KK examines the Dow Jones Industrial Average (DJIA) chart and finds that the benchmark index is back at a very important level that could lead to another sharp sell-off.

Below looks at the Dow Jones Industrial Average over the past couple of years:

The Dow has experienced a quality rally over the past 16-months inside of rising channel (A). The Dow started acting heavy and rapid selling took place as it was testing the top of the channel at (1).

The quick 10% decline took it down to the bottom of the rising channel at (2) a week ago today, where a bullish reversal pattern took place.

Joe Friday Just The Facts Ma’am: Dow bulls don’t want to see it start acting heavy again at (3) in the chart above!

The SPDR Dow Jones Industrial Average ETF (DIA) closed at $251.96 on Friday, down $-0.54 (-0.21%). Year-to-date, DIA has gained 1.85%, versus a 2.34% rise in the benchmark S&P 500 index during the same period.

DIA currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 79 ETFs in the Large Cap Value ETFs category.

Next Wednesday we are conducting a private briefing exclusively for our blog subscribers. We will discuss numerous opportunities in stocks, Metals and Crude Oil  Markets. Click HERE to register for the webinar.

This article is brought to you courtesy of Kimble Charting Solutions.

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