August 27, 2024

By Nigam Arora & Dr. Natasha Arora

To gain an edge, this is what you need to know today.

Rotation

Please click here for a chart of Dow Jones Industrial Average ETF (DIA).

Note the following:

• The chart shows the Dow Jones Industrial Average (DJIA) broke out to a new all time high.
• The chart shows that the breakout is not convincing.
• RSI on the chart shows that DJIA is overbought.  An overbought index tends to be vulnerable to a pullback.
• The chart shows that volume is not heavy on the breakout to a new all time high.  This indicates a lack of conviction.