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

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Tom Bowley
About the author: co-founded Invested Central in 2004 and served as the site's Chief Market Strategist for more than 10 years. Invested Central provides stock market education and guidance for those interested in making their own financial decisions. During his tenure at Invested Central, Tom co-hosted Market Open LIVE, a national radio broadcast that covered many of the largest markets across the U.S. In addition, he has spoken at various conferences throughout the United States and Canada and has taught thousands of traders across the globe how to trade equities more wisely with an emphasis on managing risk and intermarket relationships. Learn More
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