Dow Jones Industrial Average monthly uptrend - five-wave structure

Major US indices

It was a mixed week for the major U.S. indices. Daily Lane's Stochastic main line (K%) crossed below the overbought signal line (D%) for all three major US indices. The Stochastic crossover in the overbought area is a sell signal. Williams' Percentage Range and Lane's Stochastic are strongly overbought in a monthly time frame.

This week, the Dow Jones Industrial Average (^DJI) climbed 81.25 points and closed at 22349.59. The Dow Jones Industrial Average quarterly uptrend started on January 20, 2016 at 15,450.56 and reached 22,419.51 on September 21, 2017, making 45.10% increase in twenty months.  

The Dow Jones Industrial Average monthly uptrend has formed a five-wave structure. It started on April 19, 2017 at 20,379.55 and reached 22,419.51 on September 21, 2017, making 10.01% advance in twenty two weeks.   

The fifth wave started on August 21, 2017 at 21,600.34 and reached 22,419.51 on September 21, 2017, making 3.79% gain in four weeks. 

The monthly Relative Strength Index (RSI) and The weekly Williams' Percentage Range (W%R) are strongly overbought. The weekly Relative Strength Index (RSI) and Lane's Stochastic (%D-Slow)  have bearish divergence. The bearish divergence can be used to predict tops. The daily Williams' Percentage Range (W%R) is overbought.