Sixty-three out of the sixty-five Dow stocks fell on Friday – the worst market technical strength seen since 1929
Peter Oberois
Mar. 3, 2007

Even days before 1987 crash the market strength specially the up down breadth was better than what it is now. There are sixty-five stocks that make Dow Jones Industrial Average, Transportation Average and the Utilities average. The industrials fell 0.98%, the transports fell 1.51% and the utilities fell 1.38%. The fall was not shocking. What was real shocking the technical nature of the fall. Out of all the sixty-five stocks that make Dow Jones Industrial Average, Transportation Average and the Utilities average, 63 fell while two rose. This is the horrible technical picture.

Analytics normally do not just look at the percentage fall in the market. It looks at the breadth of the market – how many stocks can really defy the fall in the overall market. Only 2 of the 65-bell weather stocks could defy the trend and go up – rest all fell. This kind of breadth is common in a 10% of crash of the market in a single day – not a mere 1% drop in the Dow.

The worst market technical strength seen since 1929 says a big problem lies ahead. This kind of negative technical signals always accompanies serious meltdowns. It is possible that a crash will not happen but 2007 will seek very hard but never find the bottom in Dow.

Sixty-three out of the sixty-five Dow stocks fell on Friday – the worst market technical strength seen since 1929
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Analytics normally do not just look at the percentage fall in the market. It looks at the breadth of the market – how many stocks can really defy the fall in the overall market.
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