Don't Ignore This Chart!

Internet Stocks Weekly Losing Streak Nearing Bull Market Record

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Unless there's a reversal on Friday, the Dow Jones U.S. Internet Index ($DJUSNS) will close lower for the fourth consecutive week, equaling its longest losing streak since the DJUSNS bottomed in late 2008.  There's a decent chance a new record could be set next week as the weekly negative divergence continues to play out.  Here's a look at the current technical picture:

The last breakout above 1450 has not held and the next key support level is the rising 20 week EMA.  Those are two key support levels when a negative divergence is present.  If those levels are lost, then consider the 50 week SMA support as next support and currently that moving average is at 1277.

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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