Dow Jones Industrial Average (DJIA) tests the 200 day moving average

Dow Jones Industrial Average

• The Index reached the 17152 peak in July, shy of the long-term rising wedge (from October 2011 low) resistance before correcting lower (monthly chart) while the monthly MACD crossed below the signal line and the monthly RSI showed lower highs, suggesting slowing momentum;
• The current pullback threatens the rising 50 week MA on the weekly chart while both the weekly MACD and RSI have turned bearish, pointing lower;
• The daily chart shows that the correction has accelerated to test the 200 day moving average. With the daily RSI oversold, there is scope for the Index to consolidate.
• While the 16596 lower high caps, the Index may have room to go lower towards supports including 16015, then 15935 (50% retracement of 14719/17152 rise). Below lies 15648 (61.8% retracement).
• On the upside, reclaiming 16596 is needed to stabilize.

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 Daily chart

Weekly chart

Monthly chart