Watch Fedex for Confirmation of Renewed Downtrend

The DJIA closed Thursday at 10,271.21, down 1.39%  .   The Dow does have almost 600 points to drop before it confirms a downtrend – 9,620.   Although, a drop below 10,000 is the early (less viable) signal.   The S&P 500 is very close to a prior low, and a drop below it indicates broad selling pressure.

Fedex (FDX) can also be used as a market indicator.  Fedex closed down 2.93% to 81.58 on Thursday.  If there is a drop below 79.88 is could very well fill the gap we  saw in July.  That is a bearish signal.  When Fedex breaks it is a strong confirmation – it hasn’t yet, but it is worth keeping an eye on.

If the market can find support, it will have held above recent swing lows and indicates a range bound environment until 10,750 on DJIA can be penetrated to the upside.

Fedex Daily - FreeStockCharts

Cory Mitchell, CMT

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