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Technical Review of Dow Jones Industrial (INDU)

The primary bear trend from Jan 2022 decline continues as INDU suffers another market setback. A bearish island reversal on 10/07/22 and a 4-month head and shoulders top breakdown below the neckline at 29,653-30,144 (6/17/22 low) confirms a distribution top and warns of a 4,628.07-points decline or a downside target at 25,025, intermediate-term. Next pivotal support is 27,333-27,583 (bottom of Jan 2022 downtrend channel and the 50% retracement from 2020-2022 rally), 26,144-26,537 (Sept/Oct 2020 lows), and 25,025-25,372 (61.8% retracement and the head/shoulders top breakdown target).


Initial resistance is 29,685-29,859 (10/7/22 island reversal gap-down) and above this 30,454.5-30,663 (10/5/22 high and Aug 2022 downtrend), 31,021-31,110 (9/21/22 negative outside day high), 31,700-32,504 (9/13/22 gap-down, 6/28 and 9/12/22 highs, and the 50-day ma). Intermediate-term resistance remains at 33,066-33,642 (200-day ma, 6/1/22 high, left shoulder, and top of the Jan 2022 downtrend channel), and 34,281 (8/16/22 high and the head).


RRG study shows 13 INDU stocks in the Leading/Improving quadrants, including DIS, GIS, AAPL, HD, WMT, BA, HON, CVX, CAT, AXP, CSCO, JPM, and TRV. The 17 INDU stocks residing in the Lagging/Weakening quadrants include UNH, MCD, MRK, IBM, AMGN, KO, INTC, DOW, VZ, WBA, NKE, MMM, CRM, JNJ, PG, V, and MSFT.


To view the entire report, go to the Reports tab on the website or click the following:


https://www.leebullbear.com/_files/ugd/f8f1c6_28f0226639a4409abd0a3288933afcc8.pdf


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Technical Summary Equities – SPX nears pivotal intermediate-term resistance at 4,105-4,219 or the top of the Jan/Mar 2022 downtrends, Jun, and Sept 2022 highs, the 50% retracement from the Jan-Oct 202