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Weekend Analysis by Amateur-Investor
By: Amateur-Investor | June 23, 2018

There are some interesting divergences going on in the market right now. While the tech heavy Nasdaq and Russell 2000 are near all time highs, the Dow and S&P 500 haven't rallied back to their previous all time highs made last January. In fact the Dow has really been struggling of late as it had been down 8 days in a row before bouncing on Friday.

Meanwhile there have only been two other times, since 1990, when the Dow has dropped 8 consecutive days in a row. The last time was in August of 2011 and before that in October of 2008. Looking at August of 2011, after the 8th day (point A) there was a brief bounce which was then followed by more downside (points A to B).

Further back in 2008, the 8th day (point A) was also followed by a brief sharp bounce (points A to B). This was then followed by a lower low (points B to C). Thus in both cases the Dow ended up going lower.

Finally, in the near term, the Dow has key support near 24250 which is along its 200 Day Moving Average (green line). Notice the last two times the Dow briefly dropped below it's 200 Day Moving Average a rally followed (points D to E). Thus if it does eventually test its 200 Day Moving Average it will be interesting to see what occurs this time around.

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