Five Must See Charts As The Bear Market Rally May Be Ending

&l;p&g;&l;img class=&q;dam-image getty size-large wp-image-900114590&q; src=&q;https://specials-images.forbesimg.com/dam/imageserve/900114590/960x0.jpg?fit=scale&q; data-height=&q;617&q; data-width=&q;960&q;&g; (photo credit: Getty)

When timing a directional change to the stock market it&s;s key to look at the configuration of the technical levels among the five major averages.

&l;p class=&q;tweet_line&q;&g;Here are the daily charts that show what is going on now during a potential ending of the bear market rally.&l;/p&g;

&l;strong&g;The Dow Jones Industrial Average (DIA)&l;/strong&g;

&l;img class=&q;size-full wp-image-59450&q; src=&q;http://blogs-images.forbes.com/investor/files/2019/02/190221DJID.jpg?width=960&q; alt=&q;&q; data-height=&q;570&q; data-width=&q;936&q;&g; Daily Chart for the Dow (&l;em&g;Courtesy of MetaStock Xenith&l;/em&g;)

On Monday the Dow closed above my annual and monthly pivots at 25,819 and 25,827, respectively. These levels have held each day so far this week. &l;strong&g;&l;em&g;A close below 25,819 is a warning.&l;/em&g;&l;/strong&g;

&l;strong&g;The S&a;amp;P 500 Index

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&l;img class=&q;size-full wp-image-59451&q; src=&q;http://blogs-images.forbes.com/investor/files/2019/02/190221SPXD.jpg?width=960&q; alt=&q;&q; data-height=&q;571&q; data-width=&q;940&q;&g; Daily Chart For SPX (&l;em&g;Courtesy of MetaStock Xenith&l;/em&g;)

On Wednesday the S&a;amp;P 500 nearly tested my monthly risky level at 2,791.9. SPX needs to close above this key level to sustain gains.

&l;strong&g;The NASDAQ Composite&l;/strong&g;

&l;img class=&q;size-full wp-image-59452&q; src=&q;http://blogs-images.forbes.com/investor/files/2019/02/190221NasdaqD.jpg?width=960&q; alt=&q;&q; data-height=&q;571&q; data-width=&q;936&q;&g; Daily Chart for the Nasdaq (&l;em&g;Courtesy of MetaStock Xenith&l;/em&g;)

The Nasdaq has been fluttering back and forth around my monthly pivot at 7,485 and its 200-day simple moving average at 7,470. The Nasdaq needs to close above these key levels.

&l;strong&g;Dow Jones Transportation Average&l;/strong&g;

&l;img class=&q;size-full wp-image-59453&q; src=&q;http://blogs-images.forbes.com/investor/files/2019/02/190221DJTD.jpg?width=960&q; alt=&q;&q; data-height=&q;571&q; data-width=&q;938&q;&g; Daily Chart for the Transports (&l;em&g;Courtesy of MetaStock Xenith&l;/em&g;)

Transports are the key as it&a;rsquo;s above its 200-day simple moving average of 10,565 and below its quarterly and annual risky levels at 10,882 and 10,976, which I project as the potential top for the bear market rally. A daily close below the 200-day SMA would be a warning.

&l;strong&g;The Russell 2000&l;/strong&g;

&l;img class=&q;size-full wp-image-59454&q; src=&q;http://blogs-images.forbes.com/investor/files/2019/02/190221RUTD.jpg?width=960&q; alt=&q;&q; data-height=&q;568&q; data-width=&q;933&q;&g; Daily Chart for Russell 2000 (&l;em&g;Courtesy of MetaStock Xenith&l;/em&g;)

The Russell 2000 is below its 200-day simple moving average at 1,587.83 and below my annual risky level at 1,590.63. We need to see a breakout above these levels to extend the rally.

&l;strong&g;&l;em&g;Get timely investing news and information from Forbes Investing Digest. &l;a href=&q;http://info.forbes.com/Investing-Digest-FDC-Sign-Up.html?k=EM_ID_FDC&q; target=&q;_blank&q;&g;Sign up for free now&l;/a&g;.&l;/em&g;&l;/strong&g;

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