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BUZZ- DJI: Streaks may leave bulls naked on the charts
September 19, 2017 / 1:26 PM / a month ago

BUZZ- DJI: Streaks may leave bulls naked on the charts

** DJ Industrials on another run of consecutive higher daily closes, as well as record high finishes

** DJI going for an 8th straight higher daily close. Streak coming on heels of 10-day run that just occurred, Jul 25-Aug 7

** Additionally, DJI going for a 6th straight record high finish; last run was 9 from Jul 26-Aug 7

** These streaks concluded with a spike and reversal on Aug 8; DJI then sold off 2.6 pct from high to low over next 9 days

** Boeing top percentage gainer in index YTD, up 63 pct, while General Electric is worst performer, 23 pct loss

** That said, just 3 stocks, BA, Apple, and UnitedHealth account for nearly half of index YTD gain; Goldman Sachs and IBM biggest drags

** DJI now reaching key Fibo projection zone (22291.69/ 22395.59). Chart: reut.rs/2xNQGsl

** And this as overheated S&P 500 is at risk for a cool down

** DJI daily MACD rising, but faces hurdle at study resistance line from Dec 2016 high

** Thus, risk for reversal as index flirts with 22395.69

** Close below rising 50-DMA (now 21844.51) can see downside pressure mount; rising 200-DMA (now 20898.20)

** Close above 22395.69, with MACD resistance line breakout, however, can suggest potential for further gains to additional Fibo projs (22718.94/ 23044.17)

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