3/3/2019 Stocks up a little this week. Dow Jones approaching all-time highs (up 10 weeks in a row). Bearish on Dow Jones short to medium term now (from neutral).

Hi everyone, welcome back!

Today I want to analyze the weekly chart of Dow Jones (DIA)

Last week I highlighted a possible weekly divergence on the indexes, and it looks like although Dow Jones has gone up 10 weeks in a row, there’s a much better risk-reward skewed towards the downside.

This represents a good short opportunity.

Notice how the RSI keeps getting lower despite the index making new highs. This displays weakening momentum. I think shorting near 265 with a stop loss near the 270 range is a good trade. Your profit exit would be in the 245-250 range, depending on how greedy you want to get with your risk-reward 🙂

See you next week.