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Dow Fell 6 days in a Row. EXTREMELY Bullish Medium & Long term Sign for Stocks

Stock-Markets / Stock Markets 2018 Jun 20, 2018 - 07:50 PM GMT

By: Troy_Bombardia

Stock-Markets

The Dow Jones has gone down 6 days in a row. This is the first time in 15 months in which the Dow has fallen 6 consecutive days. But more importantly, the Dow has fallen 6 consecutive days while remaining above its 200 daily moving average.

In other words, this is the first time in a long time in which the Dow has fallen consistently.


We’ve demonstrated this plenty of times before here at BullMarkets:

When the market’s momentum becomes consistently weak for the first time in a long time, the market usually heads higher in the medium-long term. The last rally before a long term top is marked by weakening momentum.

Here’s what happens next to the Dow when it falls 6 days in a row for the first time in 1 year, while remaining above its 200 dma.

Here’s what happens next to the S&P 500 when it falls 6 days in a row for the first time in 1 year, while remaining above its 200 dma.

Click here to download the data in Excel.

Conclusion

Notice how both the Dow and the S&P almost always went up in the next 6-12 months.

This supports several other recent studies which demonstrate that the stock market will most likely head higher in the next 6-12 months.

So once again, the conclusion is:

  1. The stock market could face some more short term downside.
  2. The short term downside is limited.
  3. The medium-long term is bullish.

Click here for more market studies.

By Troy Bombardia

BullMarkets.co

I’m Troy Bombardia, the author behind BullMarkets.co. I used to run a hedge fund, but closed it due to a major health scare. I am now enjoying life and simply investing/trading my own account. I focus on long term performance and ignore short term performance.

Copyright 2018 © Troy Bombardia - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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