Dow Jones Rangebound

The Dow Jones Industrial Average is on its 8th day trading between the 23.6% and 38.2% Fibonacci levels while currently holding support at the 23.6% Fib level. As long as price is trading below the 38.2% Fib level the trend will remain bearish. Price is rangebound between these lower Fib levels while trending below the red downtrend resistance line which is also adding bearish pressure on price and preventing a move above the 38.2% Fib level.

The Relative Strength Index(RSI) is still trending below the centerline(50 level) which indicates that overall momentum behind price is bearish. An RSI(green line) reading above 50 is considered bullish while a reading below 50 is considered bearish.

The Price Percent Oscillator(PPO) is still showing the green PPO line rising above the purple signal line, with both lines moving upward indicating a short-term bullish momentum trend, but both lines remain below the 0 level indicating overall bearish momentum. A PPO reading above 0 is considered bullish, while a reading below 0 is bearish.

Overall, the trend behind the Dow Jones is bearish and I’m expecting an eventual move below the 23.6% Fib level as data releases continue to show extreme weakness in the U.S. economy.