Dow Jones Industrial Average
October joins September and August for months this year in which the Dow Jones Industrial Average fell from high prices at the start to lower prices at the end of the month.
The market’s closely watched measure of the very biggest stocks has bounced from time to time, but never enough to erase the amount of losses that appeared on selling days.
Even though economic reports showed strength (gross domestic product grew 4.9% in the third quarter), investors seemed to view rising interest rates as a disruptive factor mitigating everything else. With Treasury yields surpassing 5%, the dumping of Dow Jones stocks continued to accelerate through October.
These price charts show the downtrend issue for 4 of the largest components, as measured by market capitalization.
Apple
AAPL
Caterpillar
CAT
Chevrons
CLC
JP Morgan: a price chart analysis.
AAPL
CAT
CLC
Apple’s daily price chart looks like this:
Apple Daily Price Chart, 10 31 23.
In late October, the Dow’s largest component, with a market capitalization of $2.669 billion, fell below the September low of $167.50 and then rebounded. Despite the slight recovery, it remains below the 200-day moving average (the red line) and the 50-day moving average (the blue line).
The red dotted line connecting the late July high to the early September high shows the general angle of descent over the past 3 months.
Caterpillar, with a market cap of $116.71 billion, has this type of daily price chart:
Caterpillar Daily Price Chart, 10 31 23.
You can see the early August high just above $290 and the current price of $226.05, a 22% 3-month decline from the high to today.
The bearish gap of October 31 places it below the low of mid-June and sales are taking place in significant volume. The 50-day moving average is now trending downward and the 200-day moving average also appears to have moved in that direction.
Here is Chevron’s daily price chart:
Chevron Daily Price Chart, 10 31 23.
The sellers of this giant oil company – which has a market capitalization of $277.91 billion – were seriously considering exiting. The stock declined in late October, fell below March’s support level and stayed there.
It is well below the 50 and 200 day moving average, both of which are falling.
JP Morgan is a component of the Dow Jones with a market capitalization of $401.93 billion. The big bank’s daily price chart is here:
JP Morgan daily price chart, 10 31 23.
This is another example of one of the biggest phenomena peaking in late July and then being unable to sustain a rally even close to that level.
The problem here is that the stock has now closed below its 200-day moving average for 3 consecutive sessions in late October. The 50-day moving average has reversed and is now falling.
For the Dow Jones Industrial Average to rise, the majors above will have to turn around and start again.
Here is the daily price chart for the Dow:
Dow Jones Industrials daily price chart, 10 31 23.
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