Serious technical damage in Blue Chip Index Dow

In weekly Dow chart, it is resting right on 50 week moving average line. CCI lines crossed down CCIMA lines.

The fast CCI line hesitated on Zero line for two weeks but this week was the penetration to the negative side. It is now -164.45 as seen in the chart.

The slow CCI line also crossed into MA line. It crossed up in November last year which resulted in 6 months bull run.

Now it just crossed down. Unless it is not rejected in two weeks' time, Dow will head into the bear trend which may last a few months.

Bull side

• 50 wk MA line support
• Stochastics near over-sold (a bit pre-emptive to say that)

Bear side

• fast CCI line cross down Zero line
• slow CCI line cross down for the first time in more than six months
• MACD losing momentum

Unless it can come back above 11243, we favour more down side.