FX.co ★ Technical analysis of Dow Jones Industrial index for September 5, 2022

Since 1990, the monthly moving averages for 10 and 30 periods have only crossed down two times. The first time was in 2001 and the second time was in 2008, but it's possible that a third cross lower could be seen later this year or early next year.

These cross-overs to the downside are usually followed by quite a significant correction lower and that could easily be the case this time too. Taking into consideration, the overextended rally that was created due to the extreme ease of the money flow that followed the outbreak of COVID-19. Therefore, the risk is that another significant corrective decline will take place later this year or early next year.