Technical update
January 23rd, 2021
1 minute read
Technical
It’s always fun to look at the stock market as a chart & try to do some technical analysis on it. But technical are also logical. The market moves in trends & waves with a moving average which it always comes back to. Here’s an early 2021 look at where we are technically & the outlook for 2021 into 2022.
Daily
First a look at where the market is technically on a shorter-term daily basis. The market recovery is justified by the economic recovery as we’ve seen through imports.The 50 day moving average is still catching up. From 6,100 a year ago, this average is still lower, 5,947. The average will continue to rise, & so the market willl stay strong.
Weekly
Second a look at where the market is technically on a medium-term weekly basis. Woe have had a very dramatic increase in quite a short period. The index is at 6,307 while the 50 week moving average is only 5,200. This is the biggest gap we’ve ever seen & suggests that the market increased will (maybe already are) slow down.
Monthly
Third let us have a look at the longer-term technicals. The 50 month moving average at 5,800 barely changed last year while the index plunged then recovered. The index crossed back above the average in December. This means in January the average is rising again, now 5,869. This is very bullish for the longer term outlook for the JCI index.
9,000
The JCI has been rising in a channel since 2006. The index fell out of the channel in 2008, 2015 & 2020. But quickly recovered back inside. There have been three moves from the bottom to the top of the channel. Each takes about 2 years. We are now heading back inside the channel & will then head towards 9,000....
1 minute read
Technical
It’s always fun to look at the stock market as a chart & try to do some technical analysis on it. But technical are also logical. The market moves in trends & waves with a moving average which it always comes back to. Here’s an early 2021 look at where we are technically & the outlook for 2021 into 2022.
Daily
First a look at where the market is technically on a shorter-term daily basis. The market recovery is justified by the economic recovery as we’ve seen through imports.The 50 day moving average is still catching up. From 6,100 a year ago, this average is still lower, 5,947. The average will continue to rise, & so the market willl stay strong.
Weekly
Second a look at where the market is technically on a medium-term weekly basis. Woe have had a very dramatic increase in quite a short period. The index is at 6,307 while the 50 week moving average is only 5,200. This is the biggest gap we’ve ever seen & suggests that the market increased will (maybe already are) slow down.
Monthly
Third let us have a look at the longer-term technicals. The 50 month moving average at 5,800 barely changed last year while the index plunged then recovered. The index crossed back above the average in December. This means in January the average is rising again, now 5,869. This is very bullish for the longer term outlook for the JCI index.
9,000
The JCI has been rising in a channel since 2006. The index fell out of the channel in 2008, 2015 & 2020. But quickly recovered back inside. There have been three moves from the bottom to the top of the channel. Each takes about 2 years. We are now heading back inside the channel & will then head towards 9,000....
