3 Dogs of the Dow to Sell Now

The Dow is rebounding today, but don't underestimate Tuesday's tumble. The index and some of its components are in trouble.

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3 Dogs of the Dow to Sell Now

Don’t look now, but the Dow Jones Industrial Average is suffering a technical breakdown.

market crash 630 isp 300x227 3 Dogs of the Dow to Sell Now
Source: ©iStock.com/NuStock

On Tuesday, the index crashed unceremoniously through its 50-day moving average — a level that has held it up for two months after not one, not two, not three but four separate tests.

The bulls have their buy orders locked in at this level. Can the bears overrun them?

Yes, the Dow is rebounding some today. But given all the other evidence, including technical (weak volume and breadth), sentiment (options prices on the “fear gauge” is at the lowest level in at least eight years), and fundamentals (economic data has been weak both here at home and overseas), I think they will.

And if so, these three dogs of the Dow are headed for trouble.

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Article printed from InvestorPlace Media, http://investorplace.com/2014/05/3-dogs-of-the-dow/.

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