logo

FX.co ★ Technical analysis of DJI vs DJT for September 24, 2021

Technical analysis of DJI vs DJT for September 24, 2021

Technical analysis of DJI vs DJT for September 24, 2021

We have described the divergence between the Dow Jones Industrial (DJI) and the Dow Jones Transportation (DJT) indices before. The DJT peaked already back in May while the DJI continued to make new all-time highs. The divergence between the the two indices is a warning, that a larger corrective decline could be nearby.

As it can be seen on the chart above, we have seen divergence between the two many times before and it normally call for major corrections as we saw it back in 2000, 2007, 2015 and 2020. Therefore we should be aware of the red light flashing for a possible major top and a larger corrective decline in the weeks/months ahead.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
Go to the articles list Go to this author's articles Open trading account