Johnson & Johnson (JNJ) is another stock in the Dow Jones that is setting up to tank. JNJ is creating an inverse cup with handle pattern, this indicates JNJ could be headed to 61.50 in the near term if it breaks below 63.50 on heavy volume. What adds further to the likelihood of JNJ tanking, is the fact that it is crossing 0 on the MACD line. Many traders use the crossing of 0 MACD as a buy or sell signal.



The downside pressure in the Dow looks to continue, as many of the stocks that make up the DJIA are posed for a downside move. Another stocks is Caterpillar Inc. (CAT). CAT is setting up for a $10 move to the downside based on a bear flag. If CAT breaks and holds below 73 on heavy volume, it could be headed to 62 relatively quickly.



Andy Swan is co-founder and head trader for DaytradeTeam.com. To get all of Andy's day trading, swing trading, and options trading alerts in real time, subscribe to a one-week, all-inclusive trial membership to DaytradeTeam by clicking here.