Outlook of US equity market

I have attached below the 5-year charts of DJIA as at January 16 (Chart 1) & January 15 (Chart 2). When I wrote yesterday that "Except for Nikkei 225, all (the major) indices are still above their respective medium- and long-term uptrend line supports", I had in mind that DJIA as one of these indices that were holding above their uptrend line. One day later, the chart looks quite different. Other than the manner in which the uptrend line was plotted, the difference could be attributed to the absence of one or two days' data from Chart 2. If I were a bit more careful, I could have spotted this omission. From Chart 1 (i.e. DJIA as at January 16th), we can see that DJIA has just violated its long-term uptrend line at 12600-12700 level as well as its horizontal support at about 12500 level.

From Chart 3, we can see that S&P500 has also just violated its uptrend line at 1380 level, while holding onto its horizontal support at 1365 level.

Both DJIA & S&P500 must recover above their uptrend line quickly, failing which the US stock market could be entering into a bear market.


Chart 1: DJIA's 5-year chart up to January 16th (from Yahoo Finance)



Chart 2: DJIA's 5-year chart up to January 14th??? (from Yahoo Finance)



Chart 3: S&P500's 5-year chart up to January 16th (from Yahoo Finance)