In our continuing mission to watch for blind spots in the markets, over the next several days we will be reviewing the Dow Jones Industrial Average components to identify any emerging risks. At the very bottom of the Dow Jones Industrial Average Report sits Salesforce.com (CRM), a company that may serve as a proxy for broader business trends in America.
Salesforce is a cloud-based software company known for its widely adopted customer relationship management (CRM) platform. It has become a symbol of digital transformation, reflecting how modern companies operate: data-driven, customer-focused, and cloud-based. Its broad adoption across large and mid-sized enterprises makes it a useful proxy for themes like enterprise tech spending, subscription-based models, and the prioritization of customer experience. While not representative of every sector, Salesforce’s central role in business infrastructure often reflects broader shifts in corporate America.
So when Salesforce shares become relative underperformers, it is worth pausing to consider why. Recently, CRM has shown notable weakness, as highlighted in the SIA Matrix Position Chart. It has fallen to spot #430 in the SIA S&P 500 Index Report, firmly in the unfavored zone. Historical data on the long-term point and figure chart shows that during major downturns in the stock market and the economy, CRM shares have often turned negative before broader market weakness followed. The chart shows resistance at $283.02 and $318.54, while current support was recently tested at $230.12. Shares are currently trading around $265.
In the second point and figure chart, a 2% version of the 3% scaled chart above, we focus on the last two years of trading. Here we find CRM trading near its long-term trendline, highlighted in green at $218.96. This will be an important level to watch if improvement is to materialize. Near-term support is seen at $227.81, with resistance levels at $266.91 and $288.91. The upper range remains observable at $366.41, where any print near that level would likely reflect a meaningful improvement in relative strength.
This must also be viewed in the context of the broader software sector. The SIA Computer Software Sector is currently in the neutral zone within the SIA Sector Report. Additionally, CRM’s SIA SMAX score has toggled to negative and now stands at just 3 out of 10, indicating relative weakness versus a basket of alternative asset classes.
Tracking names like Salesforce closely might provide early signals about underlying shifts in market sentiment and economic momentum.
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