Today 11/02/23 U.S. had a persistent rally throughout the main trading session. The Dow Jones Industrial Average – Bigcharts.com symbol (DJIA) 50 – day – moving average (MA) moved closer to its 200 – day MA. If there’s a “Death Cross” it could be giving a bearish signal after a bottom is in place.
The daily DJIA chart courtesy of BigCharts.com shows what’s happened.
The DJIA has rallied marginally above potential resistance at its 200 – day MA.
The S&P 500 – moved decisively above its 200 – day MA.
DJIA – daily – Slow Stochastic still has only one line above the overbought zone border at 80%.
The hourly Trading View chart illustrates the Dow Jones Industrial Average (DJI) intraday action.
The DJI – hourly RSI is extremely overbought.
The U.S. monthly employment report is due out at 8:30 AM – EDT – 11/03/23. With the extremely overbought RSI there’s a good chance for a decline on the news.
The powerful and persistent 11/02/23 rally has shifted the short- term evidence in favor of the bulls. The nature of the next decline could determine the course for U.S. stocks.
A sharp drop implies an important top may have been made on 11/02/23. A slow shallow angle decline implies a correction within a bull move that could continue for several weeks.
Four Dimension Trading 