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
About the author:
Tom Bowley is the Chief Market Strategist of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market.
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