The Dow Jones Industrial Average — which we like to trade via the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) — is made up of just 30 stocks. And yet, for much of the financial media, the Dow Jones remains a simple barometer for the U.S. stock market.
My personal preference lies with broader indices such as the S&P 500, but the Dow Jones nonetheless can be used for technical measures. Because when this index breaks above or below important levels, it tends to represent important inflection points for the broader indices as well.
Currently, the DIA ETF has one very well-defined area of support, which if broken would likely lead to a significant spike of market volatility ahead.
Read my full analysis HERE
