The Dow Jones Industrial Average is in a clear down trend. This is confirmed by the formation of lower highes and the shift of the alligator indicator. The 10 and the 20 day moving averages are below the 50 day moving average last week and the index reached a low point of 32 830! The last time US30 was trading at those levels was in May, earlier in the year.

At the same time however, the Williams Percent Range indicator droped below -30, which signals for an oversold market. The %R is a powerful oscillator indicator, because it shows you the extremes in the prices. Those cheap and oversold levels attracted a lot of attention and new buyers entered the market. In just a couple of days the index jumped with a whooping 730 points! This rise takes place in the context of a 2500 point drop since late July and many investors see this as a trend reversal signal. To see our prefered price action for the next few days, please visit our Go Premium section.