Dow Jones Industrials: Some observations.
1. In a way it is not surprising there is some correction here as the mid line of channels often provides some support or resistance. 2. Notice that sudden spikes in volume usually lead to a rise in price at least in this chart (vertical arrows)
3. Every major drop has been forecast with a bearish divergence in the RSI. I know that is not always true but seems to have occurred in this chart. 4. In my own experience on many charts most often major drops on the weekly charts don't usually start with with RSI > 75 let alone >85 (like everything else I'm sure there are exceptions).
I have not done a scientific study so take it for what it is. But my experience makes me favor the recent action is more likely a limited correction with more up action to come but of course cannot say how long before that starts. Take care. Have a great weekend.
3. Every major drop has been forecast with a bearish divergence in the RSI. I know that is not always true but seems to have occurred in this chart. 4. In my own experience on many charts most often major drops on the weekly charts don't usually start with with RSI > 75 let alone >85 (like everything else I'm sure there are exceptions).
I have not done a scientific study so take it for what it is. But my experience makes me favor the recent action is more likely a limited correction with more up action to come but of course cannot say how long before that starts. Take care. Have a great weekend.