DIA & SPY daily charts

Chart Courtesy of Chaikin Analytics

Chart Courtesy of Chaikin Analytics

The above charts are very informative when reviewing market trend.   It does give you an edge in determining the ability of the market to continue a trend or not to continue a trend.

Important areas to review on these ETF charts:
Power Gauge - not available on these ETFs
Price bars above or below the gold moving average (MA)
Chaikin Money Flow (CMF)
Overbought/Oversold (OBOS)
Relative Strength (RS)

What is very interesting is that both charts give the same hints at the July 20th high.
During the rally from the July 7th bottom the price bars could not generate enough momentum to get above Chaikin's proprietary gold MA and was stopped just below it.
CMF could not get out of the red area and get into the green area above zero while the OBOS indicator went from OS to OB.  This was a hint that the market rally may not hold up.
RS during this rally also could not get out of the red area and go into the green area.
Technicals / Trends = weak


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This has been posted for Educational Purposes Only.   Do your own work and consult with Professionals before making any investment decisions.  
Past performance is not indicative of future results