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Actionable news in DOW: DOW CHEMICAL COMPANY,

Dow Chemical (DOW) Stock Might Go Down Before It Goes Up

NEW YORK (TheStreet) -- Action Alerts PLUS holding Dow Chemical Co. (DOW - Get Report) made a small top formation in June/July and turned sharply lower. Prices have rebounded on the upside in an equally sharp manner without much warning from our favorite technical indicators.

In this chart of DOW, above, the Moving Average Convergence Divergence (MACD) oscillator is in a positive position with prices above the 50-day moving average and volume very heavy on the rally. But unlike many of the short-term bottoms, we have noticed in recent weeks that we don't have a bullish divergence leading up to this latest move higher.

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In this chart above we can see that the rally in DOW has brought it up to the underside of the 40-week/200-day moving average. The OBV line is moving up strongly but the MACD oscillator has yet to generate strong buy signals.

Right now, we believe the odds favor that DOW will correct sideways to...