Don't Ignore This Chart!

DIA Breaks Channel Trendline as Momentum Turns Negative

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With a sharp decline the last eight days, the Dow Industrials SPDR (DIA) filled the early November gap and broke the channel trendline. Also notice that the Commodity Channel Index (CCI) moved to its lowest level since September 1st. The combination indicates a corrective period unfolding.

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Arthur Hill
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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