The Dow Jones Industrial Average is a price-weighted average and this means the stocks with the highest prices carry the most weight. Visa (V) is the highest priced Dow stock and it was down around 1.5% at midday, thus weighing on the Dow today. The chart below shows Visa breaking support and MACD moving below its signal line. Also note that this move comes after the July gap and break down, which means we are seeing a continuation of the summer break down.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.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.
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