The Dow Jones Industrial Average (DJIA) is down 2.3% from its record-high on May 28, but just like the S&P 500, the DJIA appears to be flashing some fatigue on the charts, suggesting some stock market risk and possible market correction.
Now, this may only be a temporary pause, or it could be foreshadowing some upcoming selling, stock market risk, or a potential buying opportunity.
The chart featured below of the DJIA (shown in the red candlesticks) and the Dow Jones Transportation Index (in green) shows a decline in both (marked by the larger purple oval). This may indicate that something bigger is coming, or, as the case was in mid-April (as indicated by the smaller purple oval), we may just be seeing a market adjustment prior to another rally.
Continue Reading: Investors Beware: Underlying Weakness In Stock Market